NASDAQ$NTCT

NetScout Systems Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

NetScout's Q4 2020 financial results were announced, revealing a slight decrease in revenue compared to the same quarter last year, alongside solid earnings per share growth for fiscal year 2020.

NETSCOUT reported a decrease in total revenue for Q4 FY2020, with $229.4 million compared to $235.0 million in the same quarter last year. Net income was $7.3 million, or $0.10 per share (diluted). The company experienced order delays related to the COVID-19 pandemic but remains confident in its strong financial position.

  • Total revenue for Q4 FY20 was $229.4 million, down from $235.0 million year-over-year.
  • Product revenue was $116.5 million, while service revenue reached $112.8 million.
  • Net income for Q4 FY20 was $7.3 million, or $0.10 per share (diluted).
  • NETSCOUT repurchased 1,951,566 shares of its common stock for approximately $50.0 million.
  • Cash and cash equivalents, and short and long-term marketable securities were $389.1 million.

Headline financials

Total Revenue

$229M

Previous: $235M-2.5%
EPS (adj)

$0.50

Previous: $0.66-24.2%
Capital Expenditures

$4.72M

Previous: $3.93M+20.0%
Free Cash Flow

$103M

Previous: $76.4M+34.2%
Net Income

$7.34M

Previous: $19.2M-61.8%
Operating Income

$12.6M

Previous: $29.2M-57.0%
Gross Profit

$167M

Previous: $176M-5.6%
Cash & Equivalents

$386M

Previous: $410M-5.7%
Total Assets

$3.12B

Previous: $3.27B-4.6%
Stock-Based Comp

$10.9M

Previous: $12.2M-10.6%

Revenue & EPS history

NetScout · Revenue · Quarterly

$229M

Q4 2020-2.5%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

NetScout · $229M total across 2 segments · Q4 2020

  • Product
    $117M-7.1%
  • Service
    $113M+3.0%

Forward guidance

Given the rapidly evolving COVID-19 situation, it is not possible, with reasonable accuracy, to estimate the impact of the pandemic on future financial performance. Therefore, the Company will defer providing fiscal year 2021 guidance until there is greater visibility on the duration, magnitude, and effects of the COVID-19 global pandemic.

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 Q4 2020

Historical avgQ4 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%

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