The 10-second takeaway
For the quarter ended March 31 (Q1), Riverbed Technology missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Riverbed Technology booked revenue of $246.1 million. The 28 analysts polled by S&P Capital IQ anticipated net sales of $261.2 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $182.4 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 $0.23. The 28 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. Non-GAAP EPS of $0.23 for Q1 were 15% higher than the prior-year quarter's $0.20 per share. GAAP EPS were -$0.05 for Q1 compared to $0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.0%, 240 basis points worse than the prior-year quarter. Operating margin was -2.7%, 990 basis points worse than the prior-year quarter. Net margin was -3.3%, 710 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $273.8 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $1.12.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,004 members out of 1,051 rating the stock outperform, and 47 members rating it underperform. Among 217 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 207 give Riverbed Technology a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Riverbed Technology is hold, with an average price target of $21.21.
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