Xyratex (Nasdaq: XRTX ) reported earnings on Oct. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Aug. 31 (Q3), Xyratex met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped.

Gross margins increased, operating margins shrank, net margins grew.

Revenue details
Xyratex chalked up revenue of $275.7 million. The two analysts polled by S&P Capital IQ expected revenue of $273.3 million on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $361.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.37. The five earnings estimates compiled by S&P Capital IQ averaged $0.44 per share. GAAP EPS of $0.28 for Q3 were 13% lower than the prior-year quarter's $0.32 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 18.5%, 180 basis points better than the prior-year quarter. Operating margin was 2.9%, 50 basis points worse than the prior-year quarter. Net margin was 2.8%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $306.8 million. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $1.20 billion. The average EPS estimate is $1.65.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 259 members out of 283 rating the stock outperform, and 24 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 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 $13.67.

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