Inside the Analysts’ Expectations for Brocade’s Fiscal 2Q17
Brocade’s fiscal 2Q17 earnings
US-based (SPY) technology firm Brocade Communications (BRCD) will be announcing its fiscal 2Q17 results on May 22, 2017. Analysts estimate that the firm will post revenues of ~$587.2 million, with a low estimate of ~$535.4 million and a high estimate of ~$639.6 million.
If Brocade meets revenue expectations of ~$587.2 million, it would mean a 12.2% YoY (year-over-year) fall. Brocade’s EPS (earnings per share) are estimated at $0.2, with a high estimate of $0.24 and a low estimate of $0.14.
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As shown in the chart, Brocade beat the analysts’ EPS estimate in fiscal 4Q16 by 50%, posting EPS of $0.33. Brocade also beat the analysts’ EPS estimate in fiscal 3Q16 by 31.2%, though its EPS of $0.16 was 50% below analyst estimate in fiscal 1Q17.
Notably, Brocade has a market cap of $5.1 billion. By comparison, peer companies Hewlett Packard Enterprise (HPE), NetApp (NTAP), and Cisco Systems (CSCO) have market caps of $31 billion, $10.9 billion, and $172 billion, respectively.
Revenue in fiscal 1Q17
In February 2017, Brocade Communications Systems announced its fiscal 1Q17 results, reporting revenue of $581 million. The company’s revenue rose 1% YoY (year-over-year) and fell 12% quarter-over-quarter.
BRCD’s non-GAAP (generally accepted accounting principles) diluted EPS (earnings per share) fell to $0.16 in fiscal 1Q17, as compared to $0.33 in fiscal 4Q16 and $0.29 in fiscal 1Q16. Its non-GAAP EPS fell 50% quarter-over-quarter and 43% YoY, primarily due to its lower SAN (storage area network) and IP Networking revenue, partially offset by its Ruckus acquisition.
Now let’s take a closer look at Brocade’s individual segments.