A Look Ahead: NetScout Systems's Earnings Forecast

NetScout Systems NTCT is set to give its latest quarterly earnings report on Thursday, 2024-10-24. Here's what investors need to know before the announcement.

Analysts estimate that NetScout Systems will report an earnings per share (EPS) of $0.45.

NetScout Systems bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.16, leading to a 1.62% drop in the share price on the subsequent day.

Here's a look at NetScout Systems's past performance and the resulting price change:

Tracking NetScout Systems's Stock Performance

Shares of NetScout Systems were trading at $21.39 as of October 22. Over the last 52-week period, shares are down 7.37%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Observations about NetScout Systems

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on NetScout Systems.

The consensus rating for NetScout Systems is Neutral, derived from 1 analyst ratings. An average one-year price target of $22.0 implies a potential 2.85% upside.

Peer Ratings Comparison

The following analysis focuses on the analyst ratings and average 1-year price targets of Infinera, Viasat and Harmonic, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Infinera is favoring an Buy trajectory, with an average 1-year price target of $6.43, suggesting a potential 69.94% downside.
• The prevailing sentiment among analysts is an Buy trajectory for Viasat, with an average 1-year price target of $17.67, implying a potential 17.39% downside.
• As per analysts' assessments, Harmonic is favoring an Buy trajectory, with an average 1-year price target of $18.67, suggesting a potential 12.72% downside.

Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Infinera, Viasat and Harmonic, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

NetScout Systems ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit and Return on Equity.

Discovering NetScout Systems: A Closer Look

NetScout Systems Inc is a provider of service assurance and cybersecurity solutions to enterprise and government networks. It bases its solutions on proprietary adaptive service intelligence technology, which helps customers monitor and identify performance issues and provides insight into network-based security threats. These solutions also deliver real-time and historical information, which provides insight to restore service and understand the quality of user experience. The company derives revenue from the sale of network management tools and security solutions. Its geographical regions include USA, which derives maximum revenue, Europe, Asia, and Rest of the World.

Key Indicators: NetScout Systems's Financial Health

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining NetScout Systems's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -17.32% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: NetScout Systems's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -253.99%, the company may face hurdles in effective cost management.

Return on Equity (ROE): NetScout Systems's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -26.68%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): NetScout Systems's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -18.94%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: NetScout Systems's debt-to-equity ratio is below the industry average. With a ratio of 0.09, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for NetScout Systems visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.