NetScout Systems Reports Miss on Earnings and Revenue
May 5, 2023
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NETSCOUT ($NASDAQ:NTCT): NetScout Systems, Inc. (NASDAQ: NTCT) recently reported its quarterly earnings results, and fell short of expectations on both earnings and revenue. NetScout reported Non-GAAP earnings per share (EPS) of $0.38, which was $0.12 lower than the expected number. Similarly, revenue of $208.1M was $19.9M lower than the forecasted amount.
NetScout Systems is a publicly traded company providing application and network performance management solutions to enterprise and government customers around the world. NetScout’s solutions provide visibility into the digital infrastructure of today’s businesses and enable them to detect, diagnose, and resolve performance issues before they impact customers or the bottom line.
Market Price
On Thursday, NETSCOUT SYSTEMS stock opened at $27.5 and closed at $28.2, rise by 8.3% from prior closing price of 26.0. The company said its revenue was negatively impacted by the economic fallout from the coronavirus pandemic exacerbated by the macro-economic environment, including reduced customer spending and decreased demand for the company’s services and products. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Netscout Systems. More…
| Total Revenues | Net Income | Net Margin |
| 897.63 | 54.46 | 6.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Netscout Systems. More…
| Operations | Investing | Financing |
| 199.55 | -70.94 | -319.67 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Netscout Systems. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.9k | 898.96 | 28.26 |
Key Ratios Snapshot
Some of the financial key ratios for Netscout Systems are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | 24.2% | 7.7% |
| FCF Margin | ROE | ROA |
| 20.9% | 2.2% | 1.5% |
Analysis
GoodWhale has conducted an analysis of NETSCOUT SYSTEMS‘ fundamentals and found that the company is classified as an ‘elephant’ according to the Star Chart. This indicates that NETSCOUT SYSTEMS is rich in assets after deducting off liabilities, making it an attractive prospect for certain types of investors. Furthermore, NETSCOUT SYSTEMS has a very high health score of 8/10 with regard to its cashflows and debt, meaning that it is capable to pay off debt and fund future operations. In terms of major performance indicators, NETSCOUT SYSTEMS is strong in profitability, medium in asset and weak in dividend growth. Overall, these findings indicate that NETSCOUT SYSTEMS is likely to remain a solid prospect for investors seeking a safe investment with a good risk/reward ratio. More…
Peers
The company’s solutions enable customers to ensure optimal service delivery and secure their networks against sophisticated cyber threats. NetScout’s award-winning products are used by Fortune 500 companies and government agencies worldwide. Corero Network Security PLC, Allot Ltd, Hillstone Networks Co Ltd are all leading competitors in the network security and performance management market.
– Corero Network Security PLC ($LSE:CNS)
Corero Network Security PLC is a publicly traded company with a market capitalization of 49.85 million as of 2022. The company has a return on equity of 10.96%. Corero Network Security PLC is engaged in the business of providing network security solutions. The company’s products and services include network security products and services, malware detection and prevention products and services, and managed security services.
– Allot Ltd ($NASDAQ:ALLT)
Allot Ltd is a company that provides communications and internet services. The company has a market capitalization of 162.32 million as of 2022 and a return on equity of -8.76%. Allot Ltd offers a variety of services such as broadband, fixed-line, and mobile services. The company has a wide array of products and services that it offers to its customers. Allot Ltd is a publicly traded company and is listed on the NASDAQ Stock Exchange.
– Hillstone Networks Co Ltd ($SHSE:688030)
Hillstone Networks Co Ltd is a Chinese multinational networking and cybersecurity equipment company headquartered in Shanghai, China. It is a provider of network security solutions for enterprises, data centers, and service providers. The company has a market cap of 4B as of 2022 and a Return on Equity of 2.03%.
Summary
The earnings miss was significant at $0.12 and the revenue miss was $19.9M. Despite these results, stock price moved up the same day, suggesting that investors thought the results were overall better than expected. Going forward, it will be important to keep an eye on how NetScout Systems manages its finances and markets its products as it adapts to the changing technology landscape.
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