Radware Ltd. (NASDAQ:RDWR) delivered a profit and missed 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 8%.
Radware Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 31.82% to $0.15 in the quarter versus EPS of $0.22 in the year-earlier quarter.
Revenue: Was the same at $46.8 million as the year-earlier quarter.
Actual vs. Wall St. Expectations: Radware Ltd. reported adjusted EPS income of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.16. It missed the average revenue estimate of $47 million.
Quoting Management: “We maintain a strong focus on the application delivery and network security markets with our ADC and attack mitigation solutions. As drivers in the marketplace such as mobile data, SDN, cloud computing and cyber security continue to increase, we feel we can grow our market share and revenues for the coming years,” stated Roy Zisapel president and chief executive officer, Radware. “In North America, where these trends are impacting the market ahead of the international markets, we are already seeing strong revenue growth and we are focused on expanding this growth to the international markets.”
Key Stats (on next page)…
Revenue increased 3.7% from $45.13 million in the previous quarter. EPS were the same at $0.15 as 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 $0.20 to a profit $0.18. For the current year, the average estimate has moved down from a profit of $0.78 to a profit of $0.70 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)