NASDAQ$NTCT

NetScout Systems Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

NetScout's Q4 2022 financial results were announced, showcasing the company's successful performance and strategic advancements.

NETSCOUT reported Q4 FY22 revenue of $191.2 million compared to $213.4 million in the same quarter last year. The company's GAAP net loss was $7.3 million, or $0.10 per share, while non-GAAP net income was $21.6 million, or $0.29 per share.

  • NETSCOUT exceeded top and bottom-line objectives for the fourth quarter of fiscal year 2022.
  • The 'NETSCOUT without Borders' strategy helped increase customer business and advance the cybersecurity agenda.
  • The company grew product and total revenues, enhanced margins, increased EPS, and generated strong free cash flow in fiscal year 2022.
  • The Board of Directors authorized the use of an accelerated share repurchase vehicle to repurchase up to $150 million of common stock.

Headline financials

Total Revenue

$191M

Previous: $213M-10.4%
EPS (adj)

$0.29

Previous: $0.49-40.8%
Capital Expenditures

$3.35M

Previous: $2.88M+16.3%
Free Cash Flow

$152M

Previous: $89.1M+70.8%
Net Income

-$7.31M

Previous: $11.4M-163.9%
Operating Income

-$7.22M

Previous: $16.1M-144.9%
Gross Profit

$144M

Previous: $158M-9.4%
Cash & Equivalents

$703M

Previous: $476M+47.6%
Total Assets

$3.19B

Previous: $3.09B+3.6%
Stock-Based Comp

$12.7M

Previous: $11.5M+10.0%

Revenue & EPS history

NetScout · Revenue · Quarterly

$191M

Q4 2022-10.4%vs Q4 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

NetScout · $191M total across 2 segments · Q4 2022

  • Service
    $109M-4.6%
  • Product
    $82.1M-17.1%

Forward guidance

NETSCOUT provided financial outlook for fiscal year 2023, projecting revenue between $895 million and $925 million and non-GAAP net income per share between $1.97 and $2.03.

Tailwinds

  • Revenue (GAAP and non-GAAP) is expected to be in the range of $895 million to $925 million, implying mid-to-high single-digit revenue growth year over year.
  • GAAP net income per share (diluted) is expected to be in the range of $0.63 to $0.69.
  • Non-GAAP net income per share (diluted) is expected to be in the range of $1.97 to $2.03.
  • The Company plans to repay up to $150 million of its outstanding debt balance under its revolving credit facility during its first quarter of fiscal year 2023.
  • The Board of Directors authorized a new share repurchase program allowing for the repurchase of 25 million shares of the Company’s common stock.

Headwinds

  • The financial outlook takes into consideration the estimated net impact of the Company’s anticipated $150 million accelerated share repurchase program, which will be partially offset by the impact of normal stock compensation dilution.
  • The Company’s plan to repay up to $150 million of outstanding debt under its revolving credit facility during its first fiscal quarter of fiscal year 2023 will impact the outlook.
  • Slowdowns or downturns in economic conditions generally and in the market for advanced network, service assurance and cybersecurity solutions specifically could impact results.
  • Volatile foreign exchange environment could impact results.
  • Lower than expected demand for the Company’s products and services could impact results.

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 2022

Historical avgQ4 2022

+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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