The 10-second takeaway
For the quarter ended March 31 (Q4), NetScout Systems beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins expanded, and net margins improved.
NetScout Systems reported revenue of $89.5 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $87.6 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $78.0 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 11 earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share. GAAP EPS of $0.30 for Q4 were 20% higher than the prior-year quarter's $0.25 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 78.8%, 20 basis points worse than the prior-year quarter. Operating margin was 23.1%, 140 basis points better than the prior-year quarter. Net margin was 14.5%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $73.7 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $339.2 million. The average EPS estimate is $1.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 123 members out of 134 rating the stock outperform, and 11 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 $22.70.
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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 has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.