Brocade Earnings: Exceeds Forecasts with Boost of Profit RISE
Brocade Communications Systems Inc. (NASDAQ:BRCD) reported net income above Wall Street’s expectations for the third quarter. 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.
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Brocade Communications Systems Inc. Earnings Cheat Sheet
Results: Net income for Brocade Communications Systems Inc. rose to $43.3 million (9 cents per share) vs. $1.9 million (0 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.
Revenue: Rose 10.4% to $555 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Brocade Communications Systems Inc. reported adjusted net income of 14 cents per share. By that measure, the company beat the mean estimate of 8 cents per share. It beat the average revenue estimate of $541.4 million.
Quoting Management: “Fiscal Q3 was a great quarter for Brocade. With continued differentiation in our products and focused execution across our organization, we were able to overcome many issues in the current challenging macroeconomic environment. As a result, our financial performance in the quarter exceeded our expectations for revenue, operating margin and earnings per share,” said Michael Klayko, CEO of Brocade.
For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 4 cents in the second quarter and by 5 cents in the first quarter.
Looking Forward: The average estimate for the fourth quarter is steady at 11 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from 43 cents per to share to 45 cents.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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