Brocade Communications Systems Earnings Preview: Can This Streak Continue?

Brocade Communications Systems (NASDAQ:BRCD) will report earnings after markets close on Thursday, May 16th. Brocade Communications Systems, Inc. provides switching solutions for storage area networks (NYSE:SAN). The Company’s switching solutions utilize the fiber channel interconnect protocol. Brocade’s family of SilkWorm switches enables a company to manage growth of its data storage requirements, improve the data transfer performance, and increase the size of its SAN.

Here is your Cheat Sheet to Brocade Communications Systems Earnings:

Earnings Expectations: Analysts expect earnings of $0.15 per share on revenues of $550.94 million. Currently, the company’s P/E ratio stands at 22.82.

Analyst Trends:

Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.15 and has not changed. For the current year, the average estimate is a profit of $0.68, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Brocade Communications Systems has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,467 1,953 2,091 2,147 2,238
Diluted EPS ($) 0.43 -0.20 0.24 0.10 0.41

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 560.64 543.44 555.33 578.36 588.73
Diluted EPS ($) 0.12 0.08 0.09 0.1139 -0.05

Past Performance:
Brocade Communications Systems has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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