Why NetScout Systems Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of NetScout Systems (NAS: NTCT) are jumping today by as much as 14% after the company reported fiscal-first-quarter earnings.
So what: Revenue totaled $76.5 million, leading to earnings per share of $0.19. Both figures slide past analyst estimates, which were calling for just $74.7 million in sales and $0.18 per share in profit. The top and bottom lines were also on the high end of management's guidance.
Now what: The company also announced the acquisition of Accanto Systems, which is expected to have minimal impact on the current year's non-GAAP results. CEO Anil Singhal said the acquisition will bolster NetScout's packet flow strategy and add important voice service monitoring capabilities. Full-year guidance is forecast between $340 million and $355 million, with adjusted earnings per share in the range of $1.21-$1.30.
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The article Why NetScout Systems Jumped originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.