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.
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