Why Riverbed Technology Skyrocketed
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 networking specialist Riverbed Technology (NAS: RVBD) have skyrocketed today by as much as 31% after the company reported second-quarter earnings.
So what: Revenue came in at $199 million with adjusted earnings per share of $0.26. The company also provided strong guidance for the third quarter, with sales expected between $214 million and $219 million. Third-quarter earnings should be $0.25 to $0.26 per share. Both forecasts for next quarter top analysts' best guesses.
Now what: Importantly, product revenue growth reaccelerated to 11%, up from 4% last quarter. Riverbed's expansion into other markets like network performance management and application delivery controllers is ramping up quickly. The Stingray business is growing faster than management expected, crossing the $20 million revenue threshold in three quarters. Riverbed also announced an important partnership with Juniper Networks (NYS: JNPR) , which will license its ADC software, providing further validation.
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The article Why Riverbed Technology Skyrocketed originally appeared on Fool.com.Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Riverbed Technology. Motley Fool newsletter services have recommended buying shares of Riverbed Technology. Motley Fool newsletter services have recommended creating a stock position in Riverbed Technology. 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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