Aruba Networks Earnings: Here’s Why Investors are Not Excited Now

Aruba Networks, Inc. (NASDAQ:ARUN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.3%.

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Aruba Networks, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.25% to $0.11 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 11.53% to $147.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Aruba Networks, Inc. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.15. It missed the average revenue estimate of $149.76 million.

Quoting Management: “While we are disappointed with our third quarter financial results and are cautious about the near-term spending environment, the secular trends driving our markets are strong,” said Dominic Orr, Aruba’s president and chief executive officer. “The proliferation of mobile devices and applications as well as BYOD is changing access networking and Aruba’s application-aware MOVE architecture is at the forefront of this technology shift.”

Key Stats (on next page)…

Revenue decreased 5.32% from $155.36 million in the previous quarter. EPS decreased 50% from $0.22 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.22 to a profit $0.18. For the current year, the average estimate has moved down from a profit of $0.80 to a profit of $0.73 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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