The 10-second takeaway
For the quarter ended Dec. 31 (Q3), NetScout Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins dropped, operating margins contracted, net margins increased.
NetScout Systems booked revenue of $91.6 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $90.7 million on the same basis. GAAP reported sales were 9.9% higher than the prior-year quarter's $83.3 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 $0.36. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.26 for Q3 were 8.3% higher than the prior-year quarter's $0.24 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 79.1%, 20 basis points worse than the prior-year quarter. Operating margin was 19.2%, 220 basis points worse than the prior-year quarter. Net margin was 12.2%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $99.2 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $350.9 million. The average EPS estimate is $1.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 122 members out of 133 rating the stock outperform, and 11 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 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 $27.41.
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