The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Riverbed Technology beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, net margins dropped.
Riverbed Technology recorded revenue of $237.4 million. The 30 analysts polled by S&P Capital IQ predicted revenue of $234.8 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $202.8 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 $0.29. The 31 earnings estimates compiled by S&P Capital IQ averaged $0.29 per share. GAAP EPS of $0.03 for Q4 were 75% lower 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 75.4%, 10 basis points better than the prior-year quarter. Operating margin was 11.3%, 360 basis points worse than the prior-year quarter. Net margin was 2.0%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $258.6 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $1.20.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 972 members out of 1,017 rating the stock outperform, and 45 members rating it underperform. Among 249 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 240 give Riverbed Technology a green thumbs-up, and nine 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 $24.08.
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