NTCT - Why Netscout Systems Is Plummeting Today
2023-10-17 11:09:02 ET
NetScout Systems (NASDAQ: NTCT) stock is getting crushed in Tuesday's trading. The cybersecurity company's share price was down 19.4% as of 10:30 a.m. ET, according to data from S&P Global Market Intelligence .
After the market closed yesterday, NetScout published preliminary second-quarter results and updated guidance that lowered its full-year performance targets. For the second quarter, the company now expects non-GAAP (adjusted) earnings per share to be between $0.60 and $0.62 on revenue between $195 million and $197 million. Meanwhile, the average analyst estimate had called for the business to post roughly $223 million in sales during the period.
NetScout's preliminary Q2 results came in well below the market's expectations. The company now expects to post revenue between $840 million and $860 this year, while it had previously called for sales to be between $915 and $945 million. Additionally, it cut its adjusted earnings target to between $2 per share and $2.20 per share -- down from previous guidance for per-share earnings between $2.20 and $2.32. Meanwhile, its GAAP earnings forecast was cut to between $0.69 and $0.89 per share -- down from its previous guidance for per-share earnings between $0.86 and $0.98.
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Why Netscout Systems Is Plummeting Today