Brocade Communications Systems Outruns Estimates Again

Brocade Communications Systems (Nasdaq: BRCD  ) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q1), Brocade Communications Systems beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Brocade Communications Systems reported revenue of $561.0 million. The 25 analysts polled by S&P Capital IQ looked for revenue of $542.0 million on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $546.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.20. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.13 per share on the same basis. GAAP EPS of $0.12 for Q1 were 100% higher than the prior-year quarter's $0.06 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.5%, 270 basis points better than the prior-year quarter. Operating margin was 12.4%, 460 basis points better than the prior-year quarter. Net margin was 10.4%, 540 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $537.0 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $0.54.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 733 members out of 779 rating the stock outperform, and 46 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Brocade Communications Systems a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brocade Communications Systems is hold, with an average price target of $5.81.

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