The 10-second takeaway
For the quarter ended March 31 (Q4), QLogic beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins contracted, net margins shrank.
QLogic booked revenue of $116.9 million. The 12 analysts polled by S&P Capital IQ hoped for revenue of $115.3 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $135.1 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 $0.17. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.16 per share. Non-GAAP EPS of $0.17 for Q4 were 50% lower than the prior-year quarter's $0.34 per share. (The prior-year quarter included $1.08 per share in earnings from discontinued operations.) GAAP EPS of $0.33 for Q4 were 76% lower than the prior-year quarter's $1.37 per share. (The prior-year quarter included $1.08 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 67.7%, 10 basis points better than the prior-year quarter. Operating margin was 8.9%, much worse than the prior-year quarter. Net margin was 25.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $113.9 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $478.1 million. The average EPS estimate is $0.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 279 members out of 297 rating the stock outperform, and 18 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give QLogic a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QLogic is hold, with an average price target of $11.05.
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