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What to Expect from Radware

By Seth Jayson - Updated Apr 7, 2017 at 12:13PM

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Checking expectations

Radware (Nasdaq: RDWR) is expected to report Q3 earnings around Oct. 25. 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 Radware's revenues will increase 13.1% and EPS will expand 32.4%.

The average estimate for revenue is $47.7 million. On the bottom line, the average EPS estimate is $0.45.

Revenue details
Last quarter, Radware reported revenue of $46.8 million. GAAP reported sales were 14% higher than the prior-year quarter's $41.1 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 $0.43. GAAP EPS of $0.32 for Q2 were 52% higher than the prior-year quarter's $0.21 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 81.2%, 140 basis points better than the prior-year quarter. Operating margin was 16.2%, 660 basis points better than the prior-year quarter. Net margin was 16.1%, 410 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $190.2 million. The average EPS estimate is $1.75.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 108 members out of 120 rating the stock outperform, and 12 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 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 outperform, with an average price target of $44.80.

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Stocks Mentioned

Radware Ltd. Stock Quote
Radware Ltd.
RDWR
$24.07 (-0.08%) $0.02

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