Brocade Communications Systems
The 10-second takeaway
For the quarter ended April 27 (Q2), Brocade Communications Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share grew. GAAP earnings per share expanded significantly.
Gross margins were steady, operating margins expanded, net margins expanded.
Brocade Communications Systems chalked up revenue of $538.8 million. The 14 analysts polled by S&P Capital IQ expected a top line of $539.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 24 earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. Non-GAAP EPS of $0.17 for Q2 were 13% higher than the prior-year quarter's $0.15 per share. GAAP EPS of $0.10 for Q2 were 25% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.0%, much about the same as the prior-year quarter. Operating margin was 10.6%, 110 basis points better than the prior-year quarter. Net margin was 8.7%, 150 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $519.4 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $2.19 billion. The average EPS estimate is $0.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 719 members out of 764 rating the stock outperform, and 45 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Brocade Communications Systems a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brocade Communications Systems is hold, with an average price target of $6.43.
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