The 10-second takeaway
For the quarter ended Dec. 31 (Q4), 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 $49.8 million. The seven analysts polled by S&P Capital IQ expected revenue of $50.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $45.1 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 $0.48. The seven earnings estimates compiled by S&P Capital IQ forecast $0.48 per share. GAAP EPS of $0.39 for Q4 were 34% higher than the prior-year quarter's $0.29 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%, 20 basis points better than the prior-year quarter. Operating margin was 18.2%, 420 basis points better than the prior-year quarter. Net margin was 18.3%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $49.2 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $211.0 million. The average EPS estimate is $2.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 106 members out of 119 rating the stock outperform, and 13 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $41.17.
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