Brocade Communications Systems, Inc. (NASDAQ: BRCD) has an unusual reaction to its earnings reports. Shares are responding favorably to growth. After many disappointments in the company’s earnings history this should feel like some fresh air.
Due to growth in the storage business, Brocade’s earnings more than doubled to $59 million and the net result was $0.12 EPS. For a reference against analyst targets, the company reported non-GAAP earnings of $93 million, or $0.20 EPS, and sales were up about 3% at $561 million. We had the consensus estimates from Thomson Reuters of $0.13 EPS on $542.36 million in sales. Gross margin was a whopping 61.5% and cash flow from operations was $127 million.
As far as how this relates to the past, the report was actually a record revenue quarter supposedly with strong momentum across many areas of the business. Storage and Service Provider businesses were said to be strong as it focuses on the Campus LAN market with a new portfolio of solutions.
Shares are responding to a 3% drop to $5.50 in regular trading with gains of almost 6% to $5.83 in the after-hours session. The 52-week trading range is $3.18 to $7.30. Investors will be happy that the news is good and the tone is positive.
JON C. OGG
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
