Brocade Slips; RBC Sees Shortfall On FY ‘08 Rev Guidance
Brocade (BRCD) shares are slower today after cautious comments on the company’s earnings outlook from RBC Capital analyst David Cahill.
Cahill today said that the company is seeing “a softer than normal contribution from the switch business and a slower than anticipated ramp of the current mainframe upgrade cycle.” Cahill notes that the company previously forecast revenue for the April quarter of $340 million to $355 million and non-GAAP EPS of 13-15 cents. Cahill cut his revenue outlook today to $340 million from $347.5 million; his EPS estimate stays 14 cents.
For the October 2008 fiscal year, the company has forecast $1.43 billion to $1.47 billion in revenue and EPS of 55-60 cents. Cahill contends those numbers are too high: he cut his own revenue forecast for the year to $1.38 billion, from $1.43 billion, while his EPS estimate drops to 57 cents, from 59 cents. He maintains his Sector Perform rating and $8 price target on the stock.
BRCD today is down 38 cents, or 5.1%, at $7.10.
this is just what Cramer said about BRCD’s last quarter, and he was dead wrong–analysts don’t have to live with their mistakes, so what the hell…
I agree there is always some jerk that coincidently(yeah right) slams the company before the earnings release killing any momentum the stock was having. Makes you wonder if he has a lot of short postions!!But in this fragile market one idiot tips the scale as everyone panics. It really sucks!!! Where did he get his inside info after they just reafirmed 2008 guidance less than 2 months ago!!! Hopefully the comapny will set this guy straight!!! This company never gets any credit for the rebuilding the they have achieved and all the obstacles they have overcome with the options scandal. They are growing and making money in a tough environment and all these idiots want to do is pick fly sh-t out of pepper and continue to discredit Brocade. Maybe this clown should look at the facts and acknowledge they had one of the biggest percentage decreases in shorts recently!! VERY POSITIVE HELLO!!!!!!!!!!!!!!!
David Cahill is a jerk.
Typical analyst..if they were worth anything and had a pinch of ability, they wouldn’t be writing columns, working for someone else. An analyst is someone who has a job, drawing a paycheque, and is expected to make commentary on stocks whether or not the comments are true. most of the time the comments reflect on personal interests and greed. So do I put much into his comments…you judge.
do investors really not understand that ANALysts do earn their paychecks from their “masters”? Do you all really believe ANALysts do their damage “in a vacuum”? Why do they say on the FAST MONEY show “that GOLDMAN SACHS is most successful because they have the best crystal ball”?????????
Come on folks……… REALLY!
i agree with Prim Reaper, Andro, and co.
i am not sure how those analyst comes up with numbers. if a company says the sales are sofer than we anticipated, the analyst is like..”oh… 1.43 billion instead of 1.47 billion!” BRCD beats everybody’s estimate. all analysts said BRCD would do bad when BRCD bought the other comp (gee.. what was it?). in Feb, 2008, BRCD says everything on the line….
if BRCD releases a great results and those analysts brough down the stock price of BRCD because of their stupid comments, i guess we should have the right to sue them. they are fXXXn’ a$$ho&%. that is all i want to say.
Play BRCD short term and you will make money.
Just another comment by RBC which means Really Bad Comments. Another canadian, that,… well,… you can figure it out. How about today earnings…beat the analysts. notice anal in analysts. Shoots from the hip and just keeps on ticking.
Well, today, Brocade proved that David Cahill was dead wrong. His estimate missed by 10millions. Well, he sucked as an analyst.
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
