NASDAQ$NTCT

NetScout Systems Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

NetScout's fourth-quarter performance was stronger than anticipated, with diluted earnings per share in line with expectations, and the company met its objectives for fiscal year 2021 despite challenges from the COVID-19 pandemic.

NETSCOUT reported Q4 FY21 revenue of $213.4 million, with GAAP net income of $11.4 million, or $0.15 per diluted share, and non-GAAP net income of $36.5 million, or $0.49 per diluted share. The company is optimistic about future growth, driven by trends such as 5G, cybersecurity, and cloud migration.

  • NETSCOUT delivered stronger-than-anticipated fourth-quarter diluted earnings per share performance on overall revenue that was in-line with expectations.
  • For the full fiscal year 2021, NETSCOUT met the objectives that they set as they managed through the unprecedented and challenging environment created by the COVID-19 global pandemic.
  • NETSCOUT is excited and optimistic about the future and long-term technology market trends that favor NETSCOUT, such as the advancement of 5G networks, the evolving cybersecurity threat landscape, and digital transformation through cloud migration.
  • For fiscal year 2022, NETSCOUT is focused on growing revenue, further enhancing diluted earnings per share performance, and continuing to deliver strong free cash flow.

Headline financials

Total Revenue

$213M

Previous: $229M-7.0%
EPS (adj)

$0.49

Previous: $0.50-2.0%
Non-GAAP Operating Margin

22.4%

No prior period
Capital Expenditures

$2.88M

Previous: $4.72M-39.0%
Free Cash Flow

$89.1M

Previous: $103M-13.0%
Net Income

$11.4M

Previous: $7.34M+55.9%
Operating Income

$16.1M

Previous: $12.6M+27.9%
Gross Profit

$158M

Previous: $167M-4.9%
Cash & Equivalents

$476M

Previous: $386M+23.3%
Total Assets

$3.09B

Previous: $3.12B-1.1%
Stock-Based Comp

$11.5M

Previous: $10.9M+5.9%

Revenue & EPS history

NetScout · Revenue · Quarterly

$213M

Q4 2021-7%vs Q4 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

NetScout · $213M total across 2 segments · Q4 2021

  • Service
    $114M+1.3%
  • Product
    $99.1M-15.0%

Forward guidance

NETSCOUT provided its financial outlook for fiscal year 2022, projecting revenue between $835 million and $865 million, GAAP net income per share between $0.44 and $0.50, and non-GAAP net income per share between $1.71 and $1.77.

Tailwinds

  • Revenue (GAAP and non-GAAP) is expected to be in the range of $835 million to $865 million.
  • GAAP net income per share (diluted) is expected to be in the range of $0.44 to $0.50.
  • Non-GAAP net income per share (diluted) is expected to be in the range of $1.71 to $1.77.

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 2021

Historical avgQ4 2021

+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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