Q4 Preview: Brocade (BRCD) Set to Post EPS Following Strong Quarter
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Price: $12.73 --0%
Rating Summary:
4 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 3 | Down: 7 | New: 7
Rating Summary:
4 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 3 | Down: 7 | New: 7
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Shares of Brocade Communication System Inc. (NASDAQ: BRCD) are trading flat at $5.75 in midday market movement on Monday ahead of the company's fourth-quarter earnings release scheduled for after the closing bell.
The data center networking solutions provider is expected by analysts to report earnings of $0.13 per share on revenue of $536.59 million.
In the third quarter, Brocade reported earnings of $0.13 per share, in line with the analyst estimate. The company reported third-quarter revenue of $504 million, missing the consensus of $508.41 million.
Since the start of the fourth quarter, shares of Brocade are up $0.90 or 19.83 percent. Year-to-date the stock is down $1.89 or 24.77 percent.
A valuation shows that Brocade is going for a forward P/E of 20.74x full year 2010 estimates.
Data from Bloomberg shows that 16 analysts have a Buy rating on the stock, 20 have a Hold and zero have a Sell. The average analyst price target on Brocade is $6.40 with a target range of $5 to $8.
Analyst Comments
On November 8, Wells Fargo Initiated coverage on Brocade at Market Perform with a valuation range of $6.00 to $7.00.
Wells Fargo analyst says, "We believe Brocade is well positioned to maintain its leadership position in the $2B SAN switch mkt. However, we believe Brocade needs to deliver sustainable share gains and margin improvement in the $25B Ethernet market to justify upside beyond our val. range. We believe this could prove difficult given the competitive nature of the network space."
The data center networking solutions provider is expected by analysts to report earnings of $0.13 per share on revenue of $536.59 million.
In the third quarter, Brocade reported earnings of $0.13 per share, in line with the analyst estimate. The company reported third-quarter revenue of $504 million, missing the consensus of $508.41 million.
Since the start of the fourth quarter, shares of Brocade are up $0.90 or 19.83 percent. Year-to-date the stock is down $1.89 or 24.77 percent.
A valuation shows that Brocade is going for a forward P/E of 20.74x full year 2010 estimates.
Data from Bloomberg shows that 16 analysts have a Buy rating on the stock, 20 have a Hold and zero have a Sell. The average analyst price target on Brocade is $6.40 with a target range of $5 to $8.
Analyst Comments
On November 8, Wells Fargo Initiated coverage on Brocade at Market Perform with a valuation range of $6.00 to $7.00.
Wells Fargo analyst says, "We believe Brocade is well positioned to maintain its leadership position in the $2B SAN switch mkt. However, we believe Brocade needs to deliver sustainable share gains and margin improvement in the $25B Ethernet market to justify upside beyond our val. range. We believe this could prove difficult given the competitive nature of the network space."
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