NetScout Systems (Nasdaq: NTCT ) reported earnings on Jan. 17. Here are the numbers you need to know.
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.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not NetScout Systems makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.