Emulex Corp Earnings: Profits Change Direction
Emulex Corporation (NYSE:ELX) climbed to a profit in the third 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 Third Quarter
Results: Reported a profit of $8.7 million (10 cents per diluted share) in the quarter. Emulex Corporation had a net loss of $18.3 million or a loss 21 cents per share in the year-earlier quarter.
Revenue: Rose 12.2% to $125.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Emulex Corporation reported adjusted net income of 21 cents per share. By that measure, the company beat the mean estimate of 10 cents per share. Analysts were expecting revenue of $123.3 million.
Quoting Management: CEO Jim McCluney commented, “I’m particularly pleased with the strength of our results in light of the seasonal weakness that is typically associated with our third fiscal quarter. The continuing expansion of our core markets drove year-over-year revenue growth in excess of 10% for the fifth consecutive quarter, and once again exceeded the high end of our guidance,” continued McCluney.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 7 cents in the second quarter, by 2 cents in the first quarter, and by 6 cents in the fourth quarter of the last fiscal year.
Revenue has risen the past four quarters. Revenue increased 12.9% to $128.7 million in the second quarter. The figure rose 14.8% in the first quarter from the year earlier and climbed 19.6% in the fourth quarter of the last fiscal year from the year-ago quarter.
Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 12 cents per share, up from 9 cents ninety days ago. The average estimate for the fiscal year is 48 cents per share, a rise from 35 cents ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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