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QLogic (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 (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