Baird Cuts Price Target on Brocade Communications (BRCD) Following 2Q Report
Baird maintained a Neutral rating on Brocade Communications (NASDAQ: BRCD), and cut the price target to $9.00 (from $10.00), following the company's 2Q earnings report. Brocade reported revenue/non-GAAP EPS of $523 million/$0.22 which is consistent with the company’s negative preliminary announcement earlier this month. Management provided the Street with FQ3 revenue/non-GAAP EPS guidance of $510-$530 million/$0.19-$0.21 which fell short of the consensus estimate of $546 million/$0.24.
Analyst Jayson Noland commented, "Brocade posted results in line with the negative pre-announce and guided to continued softness in the Storage market. Management is planning an aggressive stock buyback to offset dilution as a result of the Ruckus acquisition. We remain cautious on rapid architectural changes taking place in the Storage market."
For an analyst ratings summary and ratings history on Brocade click here. For more ratings news on Brocade click here.
Shares of Brocade closed at $7.97 yesterday.