Overview

• US network observability firm's Q4 revenue rose and beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company repurchased 1 mln shares for $29 mln in Q4

Outlook

• Netscout expects FY27 revenue between $885 mln and $915 mln

• Company sees FY27 GAAP EPS of $1.55 to $1.70; non-GAAP EPS of $2.65 to $2.80

• FY27 outlook includes $20 mln annualized revenue from DigiCert DDoS protection business acquisition

Result Drivers

• SERVICE REVENUE GROWTH - Service revenue increased and accounted for a larger share of total revenue in Q4, according to company results

• PRODUCT BACKLOG INCREASE - Product backlog rose to $50 mln at quarter-end from $33 mln a year earlier, which may support future revenue

Company press release: ID:nBw5T9zPCa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$203 mln	$198.65 mln (3 Analysts)
Q4 Adjusted EPS	Beat	$0.52	$0.46 (3 Analysts)
Q4 EPS		$0.25
Q4 Adjusted Net Income	Beat	$38.50 mln	$33.81 mln (3 Analysts)
Q4 Net Income		$18.20 mln
Q4 Adjusted Operating Margin		21.60%
Q4 Operating Margin		9.60%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Netscout Systems Inc is $36.07, about 1.5% above its May 6 closing price of $35.52

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

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