Ixia Earnings: Here’s Why Investors are Not Excited Now

Ixia (NASDAQ:XXIA) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.94%.

Ixia Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.18 in the quarter as EPS of $0.18 in the year-earlier quarter.

Revenue: Rose 25.51% to $115.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ixia reported adjusted EPS income of $0.18 per share. By that measure, the company met the mean analyst estimate of $0.18. It missed the average revenue estimate of $116.12 million.

Quoting Management: “Although revenue for our core products was lower than anticipated due to order delays from our Service Provider and network equipment manufacturer customers, we made solid progress on our key growth initiatives,” commented Vic Alston, Ixia’s president and chief executive officer. “Anue and BreakingPoint revenue surpassed expectations and grew to $33.2 million, our revenue from enterprise customers increased by nearly 50 percent compared to last year and we added several new channel and technology partners.”

Key Stats (on next page)…

Revenue decreased 5.6% from $122.78 million in the previous quarter. EPS decreased 28% from $0.25 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.23 to a profit $0.20. For the current year, the average estimate has moved down from a profit of $0.96 to a profit of $0.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)