Ixia Earnings: Here’s Why Investors are Ambivalent Now

Ixia (NASDAQ:XXIA) 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.

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Ixia Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 66.67% to $0.25 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Rose 43.39% to $122.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ixia reported adjusted EPS income of $0.25 per share. By that measure, the company beat the mean analyst estimate of $0.22. It beat the average revenue estimate of $122.18 million.

Quoting Management: “The first quarter was a solid start to the year, with good momentum from our mobility and data center solutions,” commented Vic Alston, Ixia’s president and chief executive officer. “Service provider revenue was at a record level in the quarter as our customers continue to rollout their next generation mobile networks. Revenue from Anue and BreakingPoint grew on a combined basis over 70 percent from the first quarter of last year.”

Key Stats (on next page)…

Revenue decreased 2.46% from $125.9 million in the previous quarter. EPS increased 4.17% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.22 to a profit $0.24. For the current year, the average estimate has moved up from a profit of $0.96 to a profit of $1 over the last ninety days.

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