Brocade Communications Systems Earnings: Here’s Why the Stock is Rising Now
Brocade Communications Systems, Inc. (NASDAQ:BRCD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 15.51%.
Brocade Communications Systems, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 35.71% to $0.19 in the quarter versus EPS of $0.14 in the year-earlier quarter.
Revenue: Decreased 3.37% to $536.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Brocade Communications Systems, Inc. reported adjusted EPS income of $0.19 per share. By that measure, the company beat the mean analyst estimate of $0.12. It beat the average revenue estimate of $518.84 million.
Quoting Management: “In Q3, Brocade exceeded our guidance for revenue, non-GAAP operating margin, non-GAAP EPS, and cash flow,” said Lloyd Carney, CEO of Brocade. “The storage market is recovering more quickly than we had anticipated entering our third quarter and, coupled with continued strong adoption of Gen 5 Fibre Channel, contributed to good Storage Area Networking (NYSE:SAN) revenue results. In IP Networking, our Federal sales were disappointing while Brocade VDXTM switch revenue showed continued strong growth in Q3, underscoring our leadership in Ethernet fabrics. We are making great progress toward our spending-reduction goal, and are already seeing the benefits in our financial results and cash flow.”
Key Stats (on next page)…
Revenue decreased 0.4% from $538.78 million in the previous quarter. EPS increased 11.76% from $0.17 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 $0.17 to a profit $0.15. For the current year, the average estimate has moved down from a profit of $0.68 to a profit of $0.65 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)