The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Riverbed Technology met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Riverbed Technology recorded revenue of $218.6 million. The 32 analysts polled by S&P Capital IQ looked for a top line of $216.7 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $189.8 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 $0.28. The 33 earnings estimates compiled by S&P Capital IQ averaged $0.25 per share. GAAP EPS of $0.15 for Q3 were 25% higher than the prior-year quarter's $0.12 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 77.1%, 80 basis points better than the prior-year quarter. Operating margin was 16.7%, 180 basis points better than the prior-year quarter. Net margin was 11.3%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $233.0 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $832.3 million. The average EPS estimate is $0.97.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 937 members out of 987 rating the stock outperform, and 50 members rating it underperform. Among 217 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 206 give Riverbed Technology a green thumbs-up, and 11 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 $21.48.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Riverbed Technology fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Riverbed Technology to My Watchlist.
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. 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.