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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