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QLogic (NASDAQ:QLGC) is expected to report Q3 earnings after the market close on Tuesday, January 26, with a conference call scheduled for 5:00 pm ET.

Guidance

The consensus estimate is 29c for EPS and $147.32M for revenue, according to First Call. QLogic pre-announced Q3 earnings well ahead of expectations on Jan. 12, expecting revenue in the range of $147M-$149M and EPS in the range 29c-30c. BMO Capital Markets consequently raised its rating on QLogic to outperform adding to the strength in the stock price. The follow day on Wednesday, shares of QLogic declined after its positive Q3 forecast fell short of competitor Emulex's (NYSE:ELX) more enthusiastic view. For example, while QLogic forecasts sequential revenue growth of 12%-13% for its Q3, Emulex expects its revenue to increase by about 25% for its Q2.

Analyst Views

According to Kaushik Roy, an analyst with Wedbush Securities, Emulex also had stronger sequential numbers in fiber channel and host bus adapter revenue, an area in which the companies see a significant amount of overlap. For the March quarter, Morgan Keegan thinks that the strength in the enterprise sector is likely to continue and are anticipating that QLogic should experience normal seasonality of around a 5% sequential decline. The firm feels good about its estimate of 25c on $140.7M, or down 5% sequentially. This compares to Street expectations of 26c on revenues of $141.98M. Morgan Keegan sees the enterprise IT environment improving in the near to mid-term given the lack of investment during the recession and the continued effects from the server refresh.

Source: Earnings Preview: QLogic