Silicon Graphics International Corp. (NASDAQ:SGI) 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.
Silicon Graphics International Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 63.64% to $0.18 in the quarter versus EPS of $0.11 in the year-earlier quarter.
Revenue: Rose 16.66% to $232.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Silicon Graphics International Corp. reported adjusted EPS income of $0.18 per share. By that measure, the company beat the mean analyst estimate of $0.14. It beat the average revenue estimate of $214.67 million.
Quoting Management: “We achieved another solid financial quarter with both revenue and non-GAAP net income at the high end of our guidance, while improving our net cash position by $25 million,” said Jorge Titinger, president and CEO of SGI. “As expected, in the third fiscal quarter we completed the last of the low-margin deals (LMDs), which represented approximately $50 million of revenue in the quarter and $65 million of revenue in the current fiscal year. With our emphasis on improved deal quality as well as cost reductions, we are now positioned to achieve consistent quarterly non-GAAP profitability and steady progress toward our medium-term non-GAAP operating margin target of at least 5% exiting calendar year 2013. In addition, although we still see near-term macro uncertainty related to both government and enterprise IT spending, we are investing to enhance our total solution in high-growth markets such as Big Data and high-performance Tier-2 storage, which positions SGI to grow profitably off of its current non-LMD baseline.”
Key Stats (on next page)…
Revenue increased 35.84% from $171.23 million in the previous quarter. EPS increased 80% from $0.10 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 $0.16 to a profit $0.17. For the current year, the average estimate has moved up from a profit of $0.15 to a profit of $0.31 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)