NetScout Systems, Inc. (NTCT) Shares Fall Over 20% After 2016 Guidance Falls Short of Analysts’ Expectations

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NetScout Systems, Inc. (NASDAQ:NTCT) shares are down big today after the company released their 3rd Quarter Earnings, which actually blew away analysts’ expectations, and provided an updated 2016 guidance which fell a bit short of Wall Streets’ expecations.

NetScout Systems, Inc. (NASDAQ:NTCT) reported $0.58 earnings per sahre for the third quarter. This greatly surpassed Wall Street’s expectations of just $0.40 per share. Revenue for the quarter also beat the Street’s expecations of $313.06 million, coming in surprisingly at $333.4 million. It was FY 2016 guidance, however, that has investors a bit bearish on the stock. Netscout revised its 2016 guidance by saying it expects to see EPS come in at between $1.82 and $1.90 per share, compared the analysts who had been forecasting $1.88 per share. These same analysts also predicted revenue to come in at around $1.06 billion, while NetScout’s guidance is only expecting between $1.015 and $1.025 billion.

The stock is down 22.57% or $6.32 following the news, hitting $21.68 per share. About 1.97 million shares traded hands or 186.10% up from the average. NTCT has declined 27.22% since June 23, 2015 and is downtrending. It has underperformed the S&P500 by 16.20%.

From a total of 3 analysts covering NetScout Systems (NASDAQ:NTCT) stock, 3 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $48 while the lowest target price is $33.0. The mean of all analyst targets is $33 which is 52.21% above today’s ($21.68) stock price. NetScout Systems was the topic of 4 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on January 19 with a “Outperform” rating. Sterne Agee CRT upgraded NTCT stock in a recent report from July 31 to a “Buy” rating.

The institutional sentiment increased to 1.82 in Q2 2015. It’s up 0.40, from 1.42 in 2015Q2. The ratio increased, as 47 funds sold all their NetScout Systems, Inc. shares they owned while 46 reduced their positions. 86 funds bought stakes while 83 increased their total positions. Institutions now own 88.69 million shares which is 80.40% more than the previous share count of 49.17 million in 2015Q2.

Freshford Capital Management Llc holds 5.85% of its total portfolio in NetScout Systems, Inc., equating to 767,400 shares. Oskie Capital Management Llc owns 234,998 shares representing 4.75% of their total US portfolio. Moreover, Brown Capital Management Llc has 3.32% of their total portfolio invested in the company, equating to 5.47 million shares. The Pennsylvania-based Rockshelter Capital Management Llc has a total of 2.92% of their portfolio invested in the stock. Fort Pitt Capital Group Inc, a Pennsylvania-based fund reported 586,370 shares owned.

Since May 5, 2015, the stock had 0 insider purchases, and 2 selling transactions for a total of $788,691 in net activity. Mullarkey Vincent J sold 11,000 shares worth $397,419. Demarines Victor sold 11,000 shares worth $391,272. Szabados Michael sold 5,000 shares worth $204,434.

NetScout Systems, Inc. is a provider of network, application and service assurance solutions. The company has a market cap of $2.73 billion. The Firm provides performance analytics that help enterprise, government and service well-known provider clients manage service delivery and identify emerging performance problems. It has 21.14 P/E ratio. The Firm designs, develops, makes, markets, licenses, sells and supports the products in hardware and software solutions that are used by commercial enterprises, governmental agencies and telecommunication service providers.