Emulex Corp Second Quarter Earnings Sneak Peek

Emulex Corporation (NYSE:ELX) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Emulex is the provider of a broad range of network convergence solutions that intelligently connect servers, storage, and networks within the data center.

Emulex Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 14 cents per share, a decline of 30% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 21.9% versus last year to 50 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of 13 cents per share against a mean estimate of net income of 10 cents per share.

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A Look Back: In the first quarter, the company swung to a profit of $657,000 (one cent a share) from a loss of $7.2 million (8 cents) a year earlier, beating analyst estimates. Revenue rose 0.7% to $119.3 million from $118.4 million.

Here’s how Emulex Corp traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

elx

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.9 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Wall St. Revenue Expectations: On average, analysts predict $121.9 million in revenue this quarter, a decline of 5.3% from the year-ago quarter. Analysts are forecasting total revenue of $482.2 million for the year, a decline of 3.9% from last year’s revenue of $501.8 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 12.9% in the second quarter of the last fiscal year, 12.2% in the third quarter of the last fiscal year and 4.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With four analysts rating the stock as a buy, two rating it as a sell and six rating it as a hold, there are indications of a bullish outlook.

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