Brocade Communications Systems, Inc. (BRCD) shares are up $0.27 to $12.85 in after-hours trading Thursday after the company reported financial results for its first fiscal quarter 2015.
The storage area networking provider reported non-GAAP diluted EPS of $0.27, compared to the consensus estimate of $0.24. Revenues increased 2.1% from last year to $576.2 million. Analysts expected revenues of $569.78 million. GAAP diluted EPS came in at $0.20, up from $0.18 in Q1’14, and up from $0.19 in Q4 2014. The company attributed the beat primarily to higher revs and improved gross margins.
“We delivered double-digit revenue growth in IP Networking year -over -year and one of the strongest SAN quarters in company history, resulting in increased profitability,” said in a statement Lloyd Carney, CEO of Brocade. “With a strong focus on the data center, we continue to invest strategically in disruptive technologies to build a portfolio of solutions that capitalize on the opportunities afforded to first-movers in the New IP era.”
On valuation measures, Brocade Communications Systems Inc. shares, which currently have an average 3-month trading volume of 4.7 million shares, trade at a trailing-12 P/E of 23.74, a forward P/E of 12.84 and a P/E to growth ratio of 1.64. The median Wall Street price target on the name is $12.00 with a high target of $16.00. Currently ticker boasts 4 ‘Buy’ endorsements, compared to 17 ’Holds’ and 3 ‘Sell’.
Profitability-wise, BRCD has a t-12 profit and operating margin of 10.76% and 21.28%, respectively. The $5.42 billion market cap company reported $1.26 billion in cash vs. $595.45 million in debt in its most recent quarter.
BRCD currently prints a one year return of about 33%, and a year-to-date return of around 6.50%.
The chart below shows where the equity has traded over the last 52 weeks.
Brocade Communications Systems Inc. provides storage area networking and Internet protocol networking solutions for businesses and organizations worldwide. The company was founded in 1995 and is headquartered in San Jose, California.