Brocade Communications Systems, Inc. Third Quarter Earnings Sneak Peek

Brocade Communications Systems, Inc. (NASDAQ:BRCD) will unveil its latest earnings on Thursday, August 18, 2011. The Company is a supplier of networking equipment, including end-to-end Internet Protocol based Ethernet networking solutions and storage area networking solutions for and service providers such as telecommunication firms, cable operators.

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Brocade Communications Systems, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 5 cents per share, a decline of 37.5% 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 was unchanged, but has since dropped during the last month. For the year, analysts are projecting profit of 30 cents per share, a decline of 16.7% from last year.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net income of 9 cents per share, and the previous quarter, it had profit of 12 cents.

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Wall St. Revenue Expectations: On average, analysts predict $502.7 million in revenue this quarter, a decline of 0.2% 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 17 of 28 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 9.8% to $549.9 million in second quarter. The figure rose 1.2% in the first quarter from the year earlier, climbed 5.5% in the fourth quarter of the last fiscal year from the year-ago quarter and 2.1% in the third quarter of the last fiscal year.

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 June 16, 2011 to August 12, 2011, the stock price had fallen $3.11 (-46.8%) from $6.64 to $3.53. 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 $1.76 (-33.3%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.