The 10-second takeaway
For the quarter ended March 31 (Q3), Emulex beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share shrank. GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Emulex chalked up revenue of $116.8 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $112.6 million on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $125.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.20 for Q3 were 4.8% lower than the prior-year quarter's $0.21 per share. GAAP EPS were -$0.08 for Q3 versus $0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 63.1%, 50 basis points worse than the prior-year quarter. Operating margin was -3.1%, much worse than the prior-year quarter. Net margin was -6.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $118.5 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $474.9 million. The average EPS estimate is $0.68.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Emulex is hold, with an average price target of $7.40.
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