Xyratex Beats Analyst Estimates on EPS
Jul 10th 2012 1:21PM
Updated Jul 10th 2012 1:24PM
Xyratex (NAS: XRTX) reported earnings on July 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q2), Xyratex missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share improved.
Margins increased across the board.
Xyratex chalked up revenue of $322.1 million. The five analysts polled by S&P Capital IQ anticipated revenue of $327.0 million on the same basis. GAAP reported sales were 4.9% lower than the prior-year quarter's $338.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The four earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS were $0.24 for Q2 versus -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.5%, 360 basis points better than the prior-year quarter. Operating margin was 2.5%, 410 basis points better than the prior-year quarter. Net margin was 2.2%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $344.5 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $1.76.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 259 members rating the stock outperform and 24 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Xyratex a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Xyratex is hold, with an average price target of $17.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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