Netscout Systems (NTCT) Tops Q3 EPS by 15c, Revenues Beat; Offers FY20 EPS Guidance Above Consensus, FY20 Revenue Mid-Point Guidance Above Consensus

Netscout Systems (NASDAQ: NTCT) reported Q3 EPS of $0.73, $0.15 better than the analyst estimate of $0.58. Revenue for the quarter came in at $260 million versus the consensus estimate of $249.16 million.

“We delivered strong third-quarter results with both revenue and earnings per share performance exceeding the high-end of our expectations,” stated Anil Singhal, NETSCOUT’s president and chief executive officer. “Our performance included solid revenue growth in both our service provider and enterprise verticals. We also continued to see strong adoption of our software solutions, which contributed to higher profitability and strong earnings per share performance in the quarter.”

Commenting on the Company’s plans and outlook for the remainder of fiscal year 2020, Singhal said, “With one quarter remaining, we are narrowing our revenue guidance range to $900 million to $910 million and increasing our non-GAAP earnings per share guidance range, by $0.06, to $1.51 to $1.56, due primarily to benefits associated with the clarification of tax reform legislation. These ranges reflect a low-single-digit revenue growth rate and a high-single to low-teens non-GAAP earnings per share growth rate as compared with our prior fiscal year’s performance, excluding the divested HNT tools business.”

GUIDANCE:

Netscout Systems sees FY2020 EPS of $1.51-$1.56, versus the consensus of $1.48. Netscout Systems sees FY2020 revenue of $900-910 million, versus the consensus of $900.79 million.

NETSCOUT’s fiscal year 2020 guidance, which was last provided in October 2019, has been updated to narrow the revenue range with one quarter remaining in the fiscal year and to adjust the earnings per share range to reflect the impacts associated with the clarification of tax reform legislation and recent share repurchases. The Company’s current guidance for fiscal year 2020 is as follows:

• NETSCOUT expects GAAP and non-GAAP revenue to range from $900 million to $910 million in fiscal year 2020 with organic revenue growth (which excludes the $18.0 million in HNT tools revenue from fiscal year 2019) in the low single digit range.
• The Company’s fiscal year 2020 GAAP net income per share (diluted) is now expected to range from $0.01 to $0.06. NETSCOUT’s fiscal year 2020 non-GAAP net income per share (diluted) performance is now expected to range from $1.51 to $1.56.
• A reconciliation between GAAP and non-GAAP revenue and net income per share (diluted) for NETSCOUT’s guidance is included in the attached financial tables.

For earnings history and earnings-related data on Netscout Systems (NTCT) click here.

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