The 10-second takeaway
For the quarter ended March 31 (Q1), Radware beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
Radware logged revenue of $45.0 million. The four analysts polled by S&P Capital IQ looked for net sales of $44.2 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $38.6 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 $0.39. The four earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share. GAAP EPS of $0.30 for Q1 were 58% higher than the prior-year quarter's $0.19 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 81.0%, 140 basis points better than the prior-year quarter. Operating margin was 13.9%, 540 basis points better than the prior-year quarter. Net margin was 15.3%, 390 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $46.8 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $191.0 million. The average EPS estimate is $1.66.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 110 members out of 123 rating the stock outperform, and 13 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Radware a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Radware is buy, with an average price target of $40.25.
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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. 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.