Riverbed Technology Catches Analysts Sleeping Again

Riverbed Technology (NAS: RVBD) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Riverbed Technology met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins contracted, net margins grew.

Revenue details
Riverbed Technology recorded revenue of $202.8 million. The 34 analysts polled by S&P Capital IQ looked for a top line of $200.9 million. Sales were 23% higher than the prior-year quarter's $165.4 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.25. The 34 earnings estimates compiled by S&P Capital IQ averaged $0.24 per share on the same basis. GAAP EPS of $0.12 for Q4 were 53% higher than the prior-year quarter's $0.08 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 75.3%, 130 basis points worse than the prior-year quarter. Operating margin was 12.7%, 70 basis points worse than the prior-year quarter. Net margin was 9.9%, 230 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $185.6 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $859.9 million. The average EPS estimate is $1.04.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 892 members out of 942 rating the stock outperform, and 50 members rating it underperform. Among 252 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 243 give Riverbed Technology a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Riverbed Technology is outperform, with an average price target of $31.12.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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