Nice Earnings By Riverbed Tech After The Close

Great guidance from Riverbed Tech (RVBD) after the close today. The stock has been completely hammered the last couple of weeks with a whopping 6.5% drop today. Apparently this was enough to cause management to rush out the numbers for Q1.

Not sure why the market continues to think that RVBD will miss estimates. This company provides a best of breed network optimization product that reduces network costs. Tomorrow should be a great day for the stock as they continue to produce record results though the stock was down 30% from recent highs.

Tomorrow should be the start of a good run. RVBD will top street highs with that $.20 estimate. The 2012 top estimate is $1.44. Using that estimate that is completely achievable based on todays results, RVBD was only trading at 21.5x earnings. Note below that earnings just double for Q1 '11 and the PEG on RVBD is remarkably low.

5:40PM Riverbed Technology sees Q1 revs of $163-164 mln vs $160.1 mln Thomson Reuters consensus, sees Non-GAAP EPS of $0.19-0.20 vs $0.18 consensus (RVBD) 30.92 -2.15 : Co guides Q1 above expectations... Co said, "With a strong start to 2011, Riverbed exceeded revenue and earnings expectations in the first quarter. We executed well, achieving 45% year-over-year revenue growth, and non-GAAP operating profits doubled compared to the first quarter last year. Sales increased on an annual basis across all major geographies as spending on WAN optimization remains a priority."

Disclosure: Long RVBD in both client and personal accounts. 


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