Brocade Communications Systems Fourth Quarter Earnings Sneak Peek

Brocade Communications Systems, Inc. (NASDAQ:BRCD) will unveil its latest earnings on Monday, November 19, 2012. Brocade Communications Systems is a supplier of networking equipment, including end-to-end Internet Protocol based Ethernet networking solutions and storage area networking solutions for service providers such as telecommunication firms and cable operators.

Brocade Communications Systems, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 11 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting profit of 50 cents per share, a rise of 61.3% from last year.

Past Earnings Performance: Last quarter, the company reported net income of 13 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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A Look Back: In the third quarter, profit rose 2135.4% to $43.3 million (9 cents a share) from $1.9 million (0 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 10.4% to $555.3 million from $502.9 million.

Wall St. Revenue Expectations: Analysts predict a rise of 7% in revenue from the year-earlier quarter to $538 million.

Analyst Ratings: There are mostly holds on the stock with 16 of 23 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.79 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.73 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 3.4% to $991.4 million while liabilities rose by 0.4% to $555.4 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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