QLogic Beats on Both Top and Bottom Lines

QLogic (Nasdaq: QLGC  ) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q3), QLogic beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
QLogic reported revenue of $119.4 million. The 13 analysts polled by S&P Capital IQ looked for revenue of $116.0 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $152.7 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 $0.20. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.14 for Q3 were 53% lower than the prior-year quarter's $0.30 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 67.3%, 140 basis points better than the prior-year quarter. Operating margin was 12.1%, 980 basis points worse than the prior-year quarter. Net margin was 11.1%, 860 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $111.4 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $475.7 million. The average EPS estimate is $0.77.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 274 members out of 291 rating the stock outperform, and 17 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give QLogic a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QLogic is hold, with an average price target of $10.36.

Is QLogic the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add QLogic to My Watchlist.