NetScout Systems Beats on Both Top and Bottom Lines
NetScout Systems (NAS: NTCT) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), NetScout Systems beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins expanded, and net margins improved.
NetScout Systems reported revenue of $89.5 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $87.6 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $78.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.39. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share. GAAP EPS of $0.30 for Q4 were 20% higher than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 78.8%, 20 basis points worse than the prior-year quarter. Operating margin was 23.1%, 140 basis points better than the prior-year quarter. Net margin was 14.5%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $73.7 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $339.2 million. The average EPS estimate is $1.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 123 members out of 134 rating the stock outperform, and 11 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give NetScout Systems a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NetScout Systems is outperform, with an average price target of $22.70.
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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.The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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