NASDAQ$NTCT

NetScout Systems Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Delivered strong results, exceeding third quarter revenue and EPS expectations.

NETSCOUT reported strong third-quarter results, with both revenue and earnings per share performance exceeding expectations. The company saw solid revenue growth in both service provider and enterprise verticals, with strong adoption of software solutions contributing to higher profitability and earnings per share.

  • Total revenue (GAAP) was $260.0 million, compared to $246.0 million in the same quarter last year.
  • Product revenue was $143.3 million, approximately 55% of total revenue.
  • Service revenue was $116.7 million, approximately 45% of total revenue.
  • Net income (GAAP) was $36.7 million, or $0.49 per share (diluted) versus net loss (GAAP) of $3.6 million, or $0.05 per share (diluted), for the third quarter of fiscal year 2019.

Headline financials

Total Revenue

$260M

Previous: $246M+5.7%
EPS (adj)

$0.73

Previous: $0.45+62.2%
Capital Expenditures

-$15.2M

Previous: -$19.5M+21.9%
Free Cash Flow

$21.5M

Previous: -$23.1M+193.3%
Net Income

$36.7M

Previous: -$3.6M+1119.3%
Operating Income

$36.8M

Previous: -$641K+5844.0%
Gross Profit

$194M

Previous: $176M+10.2%
Cash & Equivalents

$288M

Previous: $369M-22.1%
Total Assets

$3.13B

Previous: $3.3B-5.2%
Stock-Based Comp

$11.4M

Previous: $13.8M-17.4%

Revenue & EPS history

NetScout · Revenue · Quarterly

$260M

Q3 2020+5.7%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

NetScout · $260M total across 2 segments · Q3 2020

  • Product
    $143M+6.8%
  • Service
    $117M+4.3%

Forward guidance

NETSCOUT narrowed its revenue guidance range to $900 million to $910 million and increased its non-GAAP earnings per share guidance range to $1.51 to $1.56.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.9%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+2.2%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+18.0%

Q1 2013

Best reaction

-23.0%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+7.7%+7.5%+14.3%
Q3 2026-4.8%-0.1%+4.9%
Q2 2026+7.1%+3.6%-1.5%
Q4 2025+1.7%+8.5%+9.9%
Q3 2025+12.1%+8.0%+0.6%
Q2 2025-1.2%+1.5%+4.4%
Q1 2025+9.8%+10.0%+15.5%
Q4 2024+1.0%+1.4%-6.8%
Q3 2024+3.7%-0.4%+0.0%
Q2 2024-0.5%-3.0%-5.7%
Q1 2024-6.0%-3.8%-4.0%
Q4 2023+13.7%+11.4%+20.2%
Q3 2023+0.7%+1.4%-9.5%
Q2 2023+0.6%+1.4%+6.2%
Q1 2023-4.2%-4.6%-12.8%
Q4 2022+3.8%+6.9%+13.7%
Q3 2022+6.0%+7.7%+6.9%
Q2 2022+2.7%-1.8%-10.3%
Q1 2022-0.8%-2.6%-3.2%
Q4 2021+2.9%+3.1%+15.6%
Q3 2021-3.4%-2.3%-6.7%
Q2 2021-2.8%-2.4%+13.7%
Q1 2021-5.7%-7.7%-13.4%
Q4 2020+0.3%-10.3%+5.9%
Q3 2020+4.7%+9.0%+4.6%
Q2 2020+11.2%+12.0%+13.6%
Q1 2020-11.4%-13.0%-14.9%
Q4 2019-1.1%-5.1%-15.9%
Q3 2019+0.0%+1.0%+5.0%
Q2 2019+14.8%+10.9%+6.0%
Q1 2019-10.6%-12.4%-15.8%
Q4 2018-1.3%+4.1%-0.4%
Q3 2018+9.2%+7.1%+0.6%
Q2 2018-7.1%-6.0%+1.8%
Q1 2018+3.3%+3.3%-3.0%
Q4 2017-6.6%-5.8%+2.2%
Q3 2017+4.0%+9.2%+17.2%
Q2 2017-5.7%-6.2%+11.0%
Q1 2017+9.6%+6.8%+16.7%
Q4 2016+2.8%
Q3 2016-23.0%
Q2 2016-8.7%
Q1 2016+6.7%
Q4 2015+0.2%
Q3 2015+4.1%
Q2 2015-0.4%
Q1 2015-0.2%
Q4 2014-0.3%
Q3 2014+11.8%
Q2 2014+14.8%
Q1 2014+0.2%
Q4 2013+3.1%
Q3 2013-7.0%
Q2 2013+6.6%
Q1 2013+18.0%
Q4 2010+3.2%
Q4 2012+3.2%
Q3 2011+3.1%
Q3 2012+3.1%
Q2 2012-3.9%
Q2 2011-3.9%
Q4 2011-10.9%
Q1 2011-10.9%
Q1 2012-10.9%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro