Radware Misses Where it Counts

Radware (Nasdaq: RDWR  ) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Radware met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
Radware logged revenue of $46.8 million. The eight analysts polled by S&P Capital IQ foresaw net sales of $47.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.15. The eight earnings estimates compiled by S&P Capital IQ averaged $0.16 per share. Non-GAAP EPS of $0.15 for Q2 were 32% lower than the prior-year quarter's $0.22 per share. GAAP EPS of $0.11 for Q2 were 31% lower than the prior-year quarter's $0.16 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 80.9%, 30 basis points worse than the prior-year quarter. Operating margin was 9.5%, 670 basis points worse than the prior-year quarter. Net margin was 10.6%, 550 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $48.8 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $192.2 million. The average EPS estimate is $0.70.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 102 members out of 115 rating the stock outperform, and 13 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Radware a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Radware is outperform, with an average price target of $18.50.

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