Emulex Earnings: Here’s Why Investors are Excited Now

Emulex Corp. (NYSE:ELX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.17%.

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Emulex Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 33.33% to $0.14 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Decreased 7.12% to $116.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Emulex Corp. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.13. It beat the average revenue estimate of $112.53 million.

Quoting Management: CEO Jim McCluney commented, “I’m pleased to report we completed the acquisition of Endace, which will form the core of our Network Visibility Product line. It’s still early days, but our Connect, Monitor and Manage strategy is really resonating well with the end user community and I’m very excited about the incremental opportunities the acquisition brings to Emulex for the fourth quarter and beyond into fiscal 2014,” continued McCluney.

Key Stats (on next page)…

Revenue decreased 4.38% from $122.15 million in the previous quarter. EPS decreased 26.32% from $0.19 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 $0.69 to a profit of $0.67 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)