US$24.23 - That's What Analysts Think NetScout Systems, Inc. (NASDAQ:NTCT) Is Worth After These Results

Simply Wall St.
02 Feb

It's been a good week for NetScout Systems, Inc. (NASDAQ:NTCT) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.0% to US$23.84. Revenues were US$252m, and NetScout Systems came in a solid 13% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for NetScout Systems

NasdaqGS:NTCT Earnings and Revenue Growth February 2nd 2025

Taking into account the latest results, NetScout Systems' dual analysts currently expect revenues in 2026 to be US$829.4m, approximately in line with the last 12 months. Per-share statutory losses are expected to explode, reaching US$2.73 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$827.9m and earnings per share (EPS) of US$0.78 in 2026. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

Despite expectations of heavier losses next year,the analysts have lifted their price target 6.6% to US$24.23, perhaps implying these losses are not expected to be recurring over the long term.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2026. Historically, NetScout Systems' top line has shrunk approximately 1.2% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.8% per year. Although NetScout Systems' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for NetScout Systems dropped from profits to a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NetScout Systems' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for NetScout Systems you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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