Emulex Earnings: Falls Short of Analyst Profit Estimate

Emulex Corp. (NYSE:ELX) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. Investors are disappointed by the earnings miss, as shares are down 4.84%.

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Emulex Corp. Earnings Cheat Sheet

Results: Net income increased 14.74% to $17.2 million (19 cents per diluted share) in the quarter versus a net gain of $14.99 million in the year-earlier quarter.

Revenue: Decreased 5.11% to $122.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Emulex Corp. reported adjusted net income of 19 cents per share. By that measure, the company missed the mean analyst estimate of $0.20. It beat the average revenue estimate of $121.86 million.

Quoting Management: CEO Jim McCluney commented, “I’m pleased with the solid execution we were able to deliver for the second quarter, once again meeting both our top line revenue and our earnings goals. In addition to achieving our quarterly revenue and earnings objectives, we also strengthened our balance sheet, exiting the quarter with over $211 million in available cash and investments…

…Looking forward, we are well positioned in 16Gb Fibre Channel to continue the share gain momentum we have delivered over the past three quarters, and with expected completion of our Endace acquisition this quarter, we will further increase our relevance as a thought leader in connectivity and management of high performance, converged Ethernet networks,” McCluney concluded.

Key Stats:

Revenue increased 2.37% from $119.27 million in the previous quarter. Net income increased 2506.06% from $660,000 in the previous quarter.

Looking Forward: 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 $0.16 and has not changed. For the current year, the average estimate has moved down from a profit of $0.74 to a profit of $0.73 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)