Riverbed Technology Earnings: Here’s Why Investors are Not Excited

Riverbed Technology, Inc. (NASDAQ:RVBD) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0%.

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Riverbed Technology, Inc. Earnings Cheat Sheet

Results: Net income increased 128.29% to $46 million (29 cents per diluted share) in the quarter versus a net gain of $20.15 million in the year-earlier quarter.

Revenue: Rose 17.83% to $239 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Riverbed Technology, Inc. reported adjusted net income of 29 cents per share. By that measure, the company met the mean analyst estimate of $0.29. It beat the average revenue estimate of $234.77 million.

Quoting Management: “In 2012, we expanded our addressable market through organic innovation, new partnerships and strategic acquisitions,” said Jerry M. Kennelly, Chairman and CEO. “Revenue dollars grew more than $111 million for the full year, with most of that growth from WAN optimization. Performance management was the fastest growing product line, underpinning our strategic decision to acquire OPNET. Looking ahead, we will benefit from continued growth in our WAN optimization business and performance management product suite. I am very optimistic as we enter our first year as a billion-dollar-plus revenue company.”

Key Stats (on next page)…

Revenue increased 9.33% from $218.6 million in the previous quarter. Net income increased 86.01% from $24.73 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.26 and has not changed. For the current year, the average estimate is a profit of $1, which is the same with that ninety days ago.

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