Wednesday, February 1, 2012

Big Earnings Beat By Radware

Before the open, leading virtualization provider Radware (RDWR) reported an earnings beat of roughly 15% reporting $.42 versus estimates of $.37. Revenue was also slightly above estimates.

Oddly though the stock originally jumped over 5%, but it has been trailing off since the open even with the market up over 1%.

The company also guided Q1 above estimates with guidance of $.35 compared to $.33 estimates. This guidance likely translates into $.37-.38 when reported.

Radware remains one of the most under followed tech stocks especially with exposure to the virtual and cloud data centers. This is possibly due to the CEO being non-promotional. The company just takes care of business and each quarter it beats estimates.


Details from the Press Release:

  • Record Annual Revenues of $167.0 Million
  • Record Quarterly Revenues of $45.1 Million
  • Record Quarterly Non-GAAP EPS $0.42
  • Record Quarterly Non-GAAP Operating Margin of 20%
  • "Strong demand for our traditional and ADC virtualization products, in combination with our string of attack mitigation successes that have protected high-profile public and private sector customers, is key to this growth."

6:08AM Radware beats by $0.05, beats on revs (RDWR) 31.47 : Reports Q4 (Dec) earnings of $0.42 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.37; revenues rose 15.3% year/year to $45.1 mln vs the $44.33 mln consensus. "Strong demand for our traditional and ADC virtualization products, in combination with our string of attack mitigation successes that have protected high-profile public and private sector customers, is key to this growth."
Radware remains one of the largest positions in our Opportunistic models. Below details via Market Pulse as of January 27:


Stone Fox Capital holds an allocation of 7.3% in $RDWR in his Opportunistic Arbitrage Long Only Investment Model


Stone Fox Capital holds an allocation of 12.9% in $RDWR in his Opportunistic Arbitrage Investment Model


Disclosure: Long RDWR. Please review the disclaimer page for more details. 

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