Emulex Corp Second Quarter Earnings Sneak Peek

Emulex Corp (NYSE:ELX) will unveil its latest earnings on Thursday, January 26, 2012. Emulex is the provider of a broad range of network convergence solutions that intelligently connect servers, storage, and networks within the data center.

Emulex Corp Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 13 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 9 cents. Between one and three months ago, the average estimate moved up. It has risen from 10 cents during the last month. Analysts are projecting profit to rise by 288.9% versus last year to 35 cents.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 2 cents, reporting net income of 6 cents per share against a mean estimate of profit of 4 cents. In the fourth quarter of the last fiscal year, the company exceeded forecasts by 6 cents with net income of 7 cents versus a mean estimate of profit of one cent.

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Wall St. Revenue Expectations: On average, analysts predict $126.5 million in revenue this quarter, a rise of 11% from the year ago quarter. Analysts are forecasting total revenue of $493.4 million for the year, a rise of 9% from last year’s revenue of $452.5 million.

Analyst Ratings: Analysts seem relatively indifferent about Emulex with six of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the first quarter, the company’s loss narrowed to a loss of $7.2 million (8 cents a share) from a loss of $8.1 million (10 cents) a year earlier, beating analyst expectations. Revenue rose 14.8% to $118.4 million from $103.1 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 19.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 9.7% in the third quarter of the last fiscal year from the year-ago quarter and 5.3% in the second quarter of the last fiscal year.

Competitors to Watch: Brocade Communications Systems, Inc. (NASDAQ:BRCD), QLogic Corporation (NASDAQ:QLGC), LSI Corporation (NYSE:LSI), Hewlett-Packard Company (NYSE:HPQ), EMC Corporation (NYSE:EMC), Intel Corporation (NASDAQ:INTC), Dell Inc. (NASDAQ:DELL), Oracle Corporation (NASDAQ:ORCL), Cisco Systems, Inc. (NASDAQ:CSCO), and Intl. Business Machines Corp. (NYSE:IBM).

Stock Price Performance: During December 20, 2011 to January 20, 2012, the stock price had risen $1.70 (24.5%) from $6.94 to $8.64. The stock price saw one of its best stretches over the last year between June 27, 2011 and July 7, 2011 when shares rose for eight-straight days, rising 9.3% (+76 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight-straight days, falling 15.8% (-$1.36) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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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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