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Can Riverbed Technology Meet These Numbers?

By Seth Jayson – Updated Apr 7, 2017 at 12:23PM

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Checking expectations

Riverbed Technology (Nasdaq: RVBD) is expected to report Q3 earnings on Oct. 18. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Riverbed Technology's revenues will grow 14.2% and EPS will increase 4.2%.

The average estimate for revenue is $216.7 million. On the bottom line, the average EPS estimate is $0.25.

Revenue details
Last quarter, Riverbed Technology recorded revenue of $198.5 million. GAAP reported sales were 17% higher than the prior-year quarter's $170.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.23. GAAP EPS of $0.11 for Q2 were 57% higher than the prior-year quarter's $0.07 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 74.9%, 160 basis points worse than the prior-year quarter. Operating margin was 10.1%, 260 basis points worse than the prior-year quarter. Net margin was 9.1%, 250 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $831.1 million. The average EPS estimate is $0.96.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 935 members out of 984 rating the stock outperform, and 49 members rating it underperform. Among 217 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 210 give Riverbed Technology a green thumbs-up, and seven 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 $24.08.

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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 recommend Riverbed Technology. 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.

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