Netscout Systems (NASDAQ:NTCT) stock is falling on Tuesday after the cybersecurity company provided investors with an update on its earnings.
The bad news for NTCT stock starts with the company’s updated estimate for fiscal second-quarter 2024 revenue of between $195 million and $197 million. That’s below Wall Street’s revenue estimate of $223.56 million for the quarter.
However, the company’s adjusted EPS estimate of between 60 cents and 62 cents isn’t nearly as bad. That would actually come in above analysts’ adjusted EPS estimate of 54 cents for the period.
NTCT Stock Drops on 2024 Outlook
Also not helping matters is Netscout’s guidance for its fiscal full year of 2024. The firm expects revenue to range from $840 million to $860 million, as compared to its prior estimate of between $915 million and $945 million. That updated outlook doesn’t look good next to Wall Street’s revenue estimate of $926.28 million.
Netscout Systems also says it now expects adjusted EPS for fiscal 2024 to come in between $2 and $2.20 per share. Its prior outlook was for adjusted EPS of $2.20 to $2.32 per share. For comparison, analysts expect adjusted EPS of $2.26 for the fiscal year.
Anil Singhal, President and CEO of Netscout Systems, said the following about the updated outlook:
“Today, we are announcing preliminary second fiscal quarter results and updating our full fiscal year 2024 outlook to reflect a recent slowing in order conversion. We believe this is related to industry and economic headwinds facing our customers that began to affect our revenue in the last month of the second fiscal quarter and is expected to impact the second half of fiscal year 2024.”
NTCT stock is down 21.8% as of Tuesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
