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

Guidance

The consensus estimate is 34c for EPS and $150.27M for revenue, according to First Call. Management had lowered Q3 guidance to EPS of 30c-37c on revenue of $145M-$155M. The Q3 gross margin was guided to 66%-67%.

Analyst Views

According to recent Goldman report, the sentiment heading into QLogic's Q3 earnings has improved with Emulex's (NYSE:ELX) positive preannouncement last week. Nevertheless, the firm remains concerned that signs of slowing server demand -- and hence HBA demand -- could pressure earnings and the stock’s valuation in the months ahead. Goldman believes that server hardware did not benefit much from year-end budget flushes, and they expect that IT spending was generally tepid during last quarter. Accordingly, the firms' Q3 revenue forecast of $154.8M represents sequential growth of just 3.1% and a year-over-year decline of 0.6%. For FY12, Goldman forecasts EPS of $1.40 on revenues of $609.6M vs. consensus of $1.51 and $628.95M.

Source: Earnings Preview: QLogic