Brocade Communications Systems Inc. Fourth Quarter Earnings Sneak Peek

Brocade Communications Systems, Inc. (NASDAQ:BRCD) will unveil its latest earnings on Monday, November 21, 2011. 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 profit of 6 cents per share, a decline of 25% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 7 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 6 cents during the last month. Analysts are projecting profit to rise by 19.4% versus last year to 29 cents.

Past Earnings Performance: Last quarter, the company saw net income of 5 cents per share versus a mean estimate of profit of 5 cents per share. This comes after two consecutive quarters of exceeding expectations.

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Wall St. Revenue Expectations: On average, analysts predict $527.1 million in revenue this quarter, a decline of 4.2% from the year ago quarter. Analysts are forecasting total revenue of $2.13 billion for the year, a rise of 1.9% from last year’s revenue of $2.09 billion.

Analyst Ratings: Analysts seem relatively indifferent about Brocade Communications Systems with 15 of 25 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 91.2% to $1.9 million (0 cents a share) from $22 million (5 cents a share) the year earlier, meeting analyst expectations. Revenue fell 0.1% to $502.9 million from $503.5 million.

Key Stats:

A year-over-year revenue decrease in the third quarter snapped a streak of three consecutive quarters of revenue increases. Revenue rose 9.8%in the second quarter, 1.2% in the first quarter and 5.5% in the fourth quarter of the last fiscal year.

The decrease in profit in the third quarter came after net income rose in the previous quarter. In the second quarter, net income rose 23.4%.

Competitors to Watch: EMC Corporation (NYSE:EMC), Emulex Corporation (NYSE:ELX), NetApp Inc. (NASDAQ:NTAP), Hewlett-Packard Company (NYSE:HPQ), Cisco Systems, Inc. (NASDAQ:CSCO), Western Digital Corp. (NYSE:WDC), QLogic Corporation (NASDAQ:QLGC), Dot Hill Systems Corp. (NASDAQ:HILL), Overland Storage, Inc. (NASDAQ:OVRL), and Quantum Corporation (NYSE:QTM).

Stock Price Performance: During August 22, 2011 to November 15, 2011, the stock price had risen $1.44 (42.4%) from $3.40 to $4.84. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 9.2% (+57 cents) over that span. It saw one of its worst periods between March 25, 2011 and April 5, 2011 when shares fell for eight-straight days, falling 7.5% (-47 cents) over that span. Shares are down 45 cents (-8.5%) year to date.

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

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