NetScout Systems (NASDAQ:NTCT – Get Free Report) issued its earnings results on Thursday. The technology company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.14, FiscalAI reports. NetScout Systems had a return on equity of 9.25% and a net margin of 13.71%.The business had revenue of $210.42 million during the quarter, compared to analyst estimates of $196.17 million. During the same quarter in the prior year, the firm earned $0.34 earnings per share. NetScout Systems’s revenue for the quarter was up 12.7% on a year-over-year basis. NetScout Systems updated its FY 2027 guidance to 2.650-2.800 EPS.
Here are the key takeaways from NetScout Systems’ conference call:
- First-quarter revenue rose 13% to $210.4 million, while non-GAAP EPS increased to $0.52 from $0.34; gross margin expanded to 80.6% and operating margin improved to 20.8%.
- Service assurance revenue grew approximately 20%, supported partly by government orders and demand for Omnis Sensor and Omnis Streamer; management said the company has a solid pipeline for these AI-related offerings.
- Government-related orders totaling roughly $10 million to $15 million were pulled into the first quarter, and management expects second-quarter revenue to be broadly consistent with the prior year, resulting in only mid-single-digit first-half growth.
- Cybersecurity revenue increased just 0.6% year over year against a difficult prior-year comparison, although the DigiCert DDoS asset acquisition and capacity expansion doubled mitigation capability to 30 terabits per second and could improve recurring revenue margins over time.
- NetScout reaffirmed its fiscal 2027 outlook of $885 million to $915 million in revenue and $2.65 to $2.80 in non-GAAP EPS, while continuing to invest in AI-ready Smart Data, observability, cybersecurity, and adaptive DDoS protection.
NetScout Systems Price Performance
NetScout Systems stock traded down $1.69 during trading hours on Friday, reaching $38.44. The company had a trading volume of 763,675 shares, compared to its average volume of 518,361. NetScout Systems has a 12-month low of $21.21 and a 12-month high of $45.28. The company has a 50-day moving average price of $41.24 and a 200 day moving average price of $35.39. The firm has a market cap of $2.79 billion, a price-to-earnings ratio of 23.44 and a beta of 0.69.
Wall Street Analyst Weigh In
Check Out Our Latest Report on NetScout Systems
Insider Buying and Selling
In other news, EVP John Downing sold 8,000 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $40.29, for a total value of $322,320.00. Following the transaction, the executive vice president owned 129,121 shares in the company, valued at approximately $5,202,285.09. This trade represents a 5.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Alfred Grasso sold 5,000 shares of NetScout Systems stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $40.67, for a total transaction of $203,350.00. Following the completion of the transaction, the director directly owned 35,000 shares in the company, valued at approximately $1,423,450. The trade was a 12.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 4.74% of the company’s stock.
Hedge Funds Weigh In On NetScout Systems
A number of hedge funds have recently modified their holdings of the company. Kestra Advisory Services LLC purchased a new stake in NetScout Systems in the fourth quarter worth $162,000. Focus Partners Advisor Solutions LLC bought a new stake in NetScout Systems in the fourth quarter valued at $218,000. Northwestern Mutual Wealth Management Co. increased its position in NetScout Systems by 14.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 4,883 shares of the technology company’s stock valued at $132,000 after purchasing an additional 618 shares during the period. Inceptionr LLC purchased a new position in NetScout Systems during the 3rd quarter valued at $214,000. Finally, Tower Research Capital LLC TRC raised its holdings in NetScout Systems by 277.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,171 shares of the technology company’s stock worth $178,000 after purchasing an additional 5,270 shares in the last quarter. Hedge funds and other institutional investors own 91.64% of the company’s stock.
About NetScout Systems
NetScout Systems, Inc is a leading provider of network performance management, service assurance and cybersecurity solutions. The company designs and delivers hardware and software platforms that capture and analyze real-time and historical packet data, enabling IT teams and service providers to monitor application performance, troubleshoot network issues and defend against distributed denial-of-service (DDoS) attacks. NetScout’s flagship offerings include the nGeniusONE service assurance platform and the InfiniStream packet broker, which together provide end-to-end visibility across hybrid and multi-cloud environments.
Founded in 1984 and headquartered in Westford, Massachusetts, NetScout has built a reputation for scalable and resilient monitoring infrastructure.
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