Emulex Corporation climbed to a profit in the second quarter and beat Wall Street’s expectations in the process. Emulex is the provider of a broad range of network convergence solutions that intelligently connect servers, storage, and networks within the data center.
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Emulex Earnings Cheat Sheet for the Second Quarter
Results: Reported a profit of $15 million (17 cents per diluted share) in the quarter. The computer peripherals company had a net loss of $41 million or a loss of 47 cents per share in the year earlier quarter.
Revenue: Rose 12.9% to $128.7 million from the year earlier quarter.
Actual vs. Wall St. Expectations: ELX reported adjusted net income of 26 cents per share. By that measure, the company beat the mean estimate of 13 cents per share. Analysts were expecting revenue of $126.5 million.
Quoting Management: CEO Jim McCluney commented, “Our focus on operational excellence is reflected in our results as we once again exceeded the high-end of our revenues and earnings guidance. December was our fourth consecutive quarter of double digit year-over-year revenue growth, as we continued to drive market share gains in our core business.”
Key Stats:
Revenue has risen the past four quarters. Revenue increased 14.8% to $118.4 million in the first quarter. The figure rose 19.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.7% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the first quarter and by 6 cents in the fourth quarter of the last fiscal year.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 5 cents a share to 7 cents over the last thirty days. The average estimate for the fiscal year is 35 cents per share, a rise from 28 cents ninety days ago.
Competitors to Watch: Brocade Communications Systems, Inc. , QLogic Corporation , LSI Corporation , Hewlett-Packard Company , EMC Corporation , Intel Corporation , Dell Inc. , Oracle Corporation , Cisco Systems, Inc. , and Intl. Business Machines Corp. .
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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