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What: Shares of service assurance and network performance management specialist NetScout
So what: What do investors want to know at earnings season? They want to know that their company performed at least as well as they -- and, maybe more importantly, Wall Street analysts -- had expected. In its third quarter -- which ended Dec. 31 -- NetScout managed to top estimates, logging $0.35 in adjusted per-share profit against the $0.33 that was expected.
Year over year, revenue grew 9%, led by a 12% increase in service sales. Product revenue was up 7%, but it showed an even more marked 21% jump from the company's fiscal second quarter.
Now what: Management narrowed the company's expectations for the full year now that it has only one quarter left to go. Revenue is seen clocking in between $305 million and $310 million, while non-GAAP earnings per share are expected to be between $1.07 and $1.11. On balance, the new ranges show management stepping back its expectations. However, current analyst expectations have the company earning $1.07 per share on $304 million in sales for the year, so management's new view is still above Wall Street's.
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.