The 10-second takeaway
For the quarter ended March 31 (Q1), Riverbed Technology missed slightly on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Riverbed Technology reported revenue of $182.4 million. The 35 analysts polled by S&P Capital IQ expected to see a top line of $186.0 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $163.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.20. The 35 earnings estimates compiled by S&P Capital IQ predicted $0.20 per share on the same basis. GAAP EPS of $0.04 for Q1 were 50% lower than the prior-year quarter's $0.08 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 74.4%, 180 basis points worse than the prior-year quarter. Operating margin was 7.2%, 600 basis points worse than the prior-year quarter. Net margin was 3.8%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $201.8 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $857.3 million. The average EPS estimate is $1.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 913 members out of 967 rating the stock outperform, and 54 members rating it underperform. Among 245 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 232 give Riverbed Technology a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Riverbed Technology is outperform, with an average price target of $30.36.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Riverbed Technology. Motley Fool newsletter services have recommended buying shares of and writing covered calls on Riverbed Technology. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.