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Netscout (NTCT)
:NTCT
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Netscout Systems
(NASDAQ:NTCT)
Rating:54Neutral
Price Target:
$23.00
▼(-0.17%Downside)
Netscout Systems (NTCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.64B
Dividend YieldN/A
Average Volume (3M)610.19K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-0.82%
EPS Growth-146.80%
CountryUS
Employees2,273
SectorTechnology
Sector Strength94
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.52
Shares Outstanding71,328,735
10 Day Avg. Volume852,352
30 Day Avg. Volume610,188
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)1.01
Price to Sales (P/S)0.00
P/FCF Ratio14.09
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit2.94
Enterprise Value/Ebitda-1.28
Forecast
1Y Price Target
$21.00Price Target Upside-8.85% Downside
Rating ConsensusHold
Number of Analyst Covering1
Netscout Systems Business Overview & Revenue Model
Company DescriptionNetscout Systems, Inc. (NTCT) is a prominent provider of application and network performance management solutions. The company operates within the technology sector, primarily focusing on delivering advanced service assurance solutions to manage and protect digital environments. Netscout offers a comprehensive suite of products that enable organizations to monitor network performance, troubleshoot issues, and ensure the seamless operation of critical applications. Their offerings cater to a diverse range of industries, including telecommunications, enterprise, and government sectors.
How the Company Makes MoneyNetscout Systems generates revenue through the sale of its network performance management and cybersecurity solutions. The company's primary revenue streams include the sales of software licenses, hardware products, and subscription services. Netscout's solutions are often utilized by large enterprises and service providers to enhance their network visibility and operational efficiency. Additionally, the company offers maintenance and support services, which provide recurring revenue and strengthen customer relationships. Significant partnerships with technology vendors and service providers also play a crucial role in expanding their market reach and enhancing their solutions' integration capabilities.
Netscout Systems Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2025)
| % Change Since: 8.63%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong performance in the Cybersecurity segment and effective cost management contributing to financial stability. However, challenges remain in the Service Assurance segment and service provider revenue, leading to a decline in overall revenue and EPS. The company remains optimistic about future growth prospects, particularly in Cybersecurity, despite economic uncertainties.Q4-2025 Updates
Positive Updates
Strong Fourth Quarter Revenue
Fourth-quarter revenue exceeded expectations, driven by solid performance in the Cybersecurity product line. Revenue increased 1% to approximately $205 million.
Cybersecurity Growth
Cybersecurity offerings delivered nearly 7% year-over-year revenue growth, driven by strong momentum within the enterprise customer vertical.
Cost Management and Financial Stability
Non-GAAP EPS for fiscal year 2025 was $2.22, a 1% improvement over fiscal year 2024, achieved through efficient cost management.
Strong Cash Flow
NetScout ended fiscal year 2025 with $492.5 million in cash and generated free cash flow of $211 million for the year.
Customer Wins and Market Expansion
Notable wins in Service Assurance and Cybersecurity with leading financial services and cloud service providers, respectively.
Negative Updates
Decline in Service Assurance Revenue
Service Assurance revenue declined approximately 4% year over year, partially due to the divestiture of the Test Optimization business and lower radio frequency propagation modeling project revenue.
Operating Margin and EPS Decline
Quarterly non-GAAP diluted earnings per share was $0.52, down approximately 5%, compared to the prior year.
Service Provider Revenue Decrease
Service provider customer vertical revenue decreased 10.1% year over year.
Company Guidance
During NetScout's fourth-quarter and full fiscal year 2025 earnings call, the company reported robust financial performance, notably in their Cybersecurity product line, which experienced a nearly 7% year-over-year revenue growth. The fourth-quarter revenue increased by 1% to approximately $205 million, while non-GAAP diluted earnings per share stood at $0.52, reflecting a 5% decrease year-over-year. The full fiscal year 2025 concluded with a revenue of approximately $823 million, remaining essentially flat when adjusted for the divestiture of the Test Optimization business. NetScout achieved a growth in non-GAAP EPS to $2.22 per diluted share, a 1% increase from the previous year, due to their focus on cost management. The company highlighted a strong cash position with $492.5 million in cash and marketable securities and reported a significant free cash flow of $211 million for the year. Looking forward to fiscal year 2026, NetScout anticipates revenue growth in the range of $825 million to $865 million and non-GAAP diluted EPS between $2.25 and $2.40, while maintaining a strategic focus on AI and cybersecurity product investments.Netscout Systems Financial Statement Overview
Summary
Netscout Systems shows mixed financial performance with declining revenue and ongoing profitability issues. However, strong cash flow and manageable leverage on the balance sheet are positives.Income Statement
Netscout Systems has experienced declining revenue over the past year, with total revenue decreasing from $914.5 million in 2023 to $822.7 million in 2025. The company has also faced consistent operating losses, as indicated by negative EBIT and net income in the most recent year. Gross profit margins have remained stable, but the net profit margin has been negative, highlighting profitability challenges.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. There is a significant decrease in stockholders' equity, which can impact financial stability. The equity ratio remains healthy, suggesting a stable asset base. However, the overall decrease in total assets and equity over time is a concern.60
Neutral
Cash Flow
Netscout Systems has maintained a positive free cash flow, which is a positive indicator of financial health. The company's operating cash flow has grown significantly compared to previous years, improving its ability to cover operational expenses. The free cash flow to net income ratio is favorable, showing effective cash management despite negative net income.70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 821.13M | 822.68M | 829.46M | 914.53M | 855.58M | 831.28M |
| Gross Profit | 623.17M | 643.94M | 642.04M | 691.43M | 641.39M | 609.18M |
| EBITDA | -334.26M | -367.60M | 134.23M | 174.01M | 155.10M | 147.19M |
| Net Income | -417.96M | -366.92M | -147.73M | 59.65M | 35.87M | 19.35M |
Balance Sheet | ||||||
| Total Assets | 2.17B | 2.19B | 2.60B | 2.82B | 3.19B | 3.09B |
| Cash, Cash Equivalents and Short-Term Investments | 426.90M | 491.47M | 423.13M | 419.00M | 703.20M | 476.45M |
| Total Debt | 117.76M | 43.50M | 150.08M | 160.47M | 415.34M | 423.62M |
| Total Liabilities | 654.16M | 626.18M | 703.24M | 790.91M | 1.13B | 1.08B |
| Stockholders Equity | 1.52B | 1.56B | 1.89B | 2.03B | 2.06B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 164.12M | 212.26M | 52.47M | 146.00M | 285.61M | 197.40M |
| Operating Cash Flow | 169.73M | 217.67M | 58.81M | 156.65M | 296.01M | 213.92M |
| Investing Cash Flow | 1.97M | -5.71M | 13.36M | 15.30M | -68.35M | 24.70M |
| Financing Cash Flow | -66.74M | -142.01M | -69.35M | -419.43M | -54.16M | -118.31M |
Netscout Systems Technical Analysis
Positive
23.04
Price Trends
23.39
Negative
22.21
Positive
22.20
Positive
Market Momentum
-0.26
Positive
46.18
Neutral
31.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTCT, the sentiment is Positive. The current price of 23.04 is below the 20-day moving average (MA) of 23.76, below the 50-day MA of 23.39, and above the 200-day MA of 22.20, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 31.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTCT.
Netscout Systems Risk Analysis
Netscout Systems disclosed 33 risk factors in its most recent earnings report. Netscout Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Netscout Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.25B | 26.79 | 5.32% | ― | -2.09% | 76.96% | |
73 Outperform | $1.35B | 28.13 | 24.36% | 1.28% | 4.90% | 9.91% | |
73 Outperform | $4.70B | 25.15 | 152.34% | ― | 4.88% | 80.94% | |
71 Outperform | $2.05B | ― | -0.90% | ― | 14.44% | 91.60% | |
68 Neutral | $1.25B | 110.03 | 3.78% | ― | 9.54% | ― | |
64 Neutral | S$617.30M | 14.58 | 0.69% | 5.53% | 2.72% | -27.37% | |
54 Neutral | $1.64B | ― | -21.26% | ― | -0.82% | -146.80% |
* Technology Sector Average
Performance Comparison
NTCT
Netscout Systems
23.04
4.85
26.66%
RDWR
Radware
29.17
11.25
62.78%
VRNT
Verint Systems
20.81
-13.23
-38.87%
ATEN
A10 Networks
18.73
5.13
37.72%
FIVN
Five9
26.94
-16.67
-38.23%
BOX
Box
32.43
5.35
19.76%
Netscout Systems Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Netscout Systems Announces CFO and COO Retirement
Positive
May 8, 2025
On May 5, 2025, NETSCOUT SYSTEMS announced the retirement of its Chief Financial Officer, Jean Bua, and Chief Operating Officer, Michael Szabados, effective May 31, 2025. They will transition to advisory roles until June 2026. Anthony Piazza and Sanjay Munshi will assume the roles of CFO and COO, respectively, on June 1, 2025. The company also reported strong financial results for the fourth quarter and full fiscal year 2025, with a focus on cybersecurity solutions driving revenue. NETSCOUT aims to continue investing in innovation and maintaining customer relationships to support its long-term strategy.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.