The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Radware met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins grew across the board.
Radware reported revenue of $47.5 million. The eight analysts polled by S&P Capital IQ anticipated sales of $47.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $42.2 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 $0.45. The eight earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.35 for Q3 were 46% higher than the prior-year quarter's $0.24 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 81.1%, 130 basis points better than the prior-year quarter. Operating margin was 16.8%, 520 basis points better than the prior-year quarter. Net margin was 17.3%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $50.6 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $190.2 million. The average EPS estimate is $1.75.
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 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 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 $40.86.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Radware 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 Radware 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 has no positions in the stocks mentioned above. 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.