NEW YORK (TheStreet) -- Brocade Communications (BRCD) stock is falling by 7.83% to $9.30 in after-hours trading on Monday, after the company reported its financial results for the 2015 fourth quarter and provided guidance for the fiscal 2016 first quarter after the market close today.
For the most recent quarter, the networking equipment supplier reported adjusted earnings of 26 cents per share, an increase of 8% from 24 cents for the year-ago period.
Revenue rose by 4% year-over-year to $589 million, up from $564 million for the 2014 third quarter.
Analysts expected Brocade Communications to report earnings of 24 cents per share on revenue of $575.56 million for the most recent quarter.
The company anticipates fiscal 2016 first quarter adjusted earnings to range between 23 cents per share and 25 cents per share, and has forecast for revenue between $550 million and $570 million for the quarter.
"We delivered annual revenue growth in fiscal 2015, with a year-over-year revenue increase in each fiscal quarter," CEO Lloyd Carney said in a statement. "We continued to expand our portfolio of software and hardware products through both technology innovation and strategic acquisitions. Looking forward, these investments create new opportunities for us to continue to grow revenue and EPS in 2016 and beyond."
Additionally, the company's board has declared a dividend of 4.5 cents per share. The dividend is payable on January 4 to shareholders of record as of December 10.
Separately, TheStreet Ratings team rates BROCADE COMMUNICATIONS SYS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate BROCADE COMMUNICATIONS SYS (BRCD) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: BRCD
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