You are right. But they will have to update their
estimates tor the next quarters. RDWR should continue with
its marketing efforts. FFIV invested $8.5M in sales
and marketing expenses to sell $23.4M in Q1.RDWR S&M
expenses are half of it.if they will continue to grow in
qurterly rate of 30%, its annual EPS might be above $.40.
I wonder how analysts will update their annual EPS.
it won't matter how good our numbers are. People
in this market simply don't reward performance -they
sell the news. But, I would still consider 0.05 EPS
exceptional. 5 times expected earnings. To me that is great
and it should prompt some upgrades from analysts. It
may not be this quarter but eventually RDWR's results
will be impossible for the market to ignore. When this
happens it will be too late for anyone to jump on board
and make any real money. BUY, HOLD, GET RICH!
I made few phones and as a result, my estimate is
that revenues are $6.7M only. This is nice growth of
34% above last quarter but I was expecting more than
$7.0M. There are rumors that feworders received in Q1
will be considered as Q2 sales. This is conservative
and also healthy approach.
The better news are
that net income is estimated to be $0.9M. It means
$.05 diluted net income per share, which is much
higher than $.03 of last quarter, and should be
cosidered as a great surprise to average estimate of the
brokers.(Which is $.01 only).
I wonder how the market is
going to react to such results.
Trader's Edge - Radware Ltd. (RDWR)
[BRIEFING.COM - Damon Southward] We
continue to wade through the tech carnage in search of
companies with good odds of staging a full recovery. The
problem with this strategy is that it's impossible to
predict when the next bomb will go off in the market,
causing even the quality companies to lose their footing.
In times of unrest, such as those recently
experienced in Techland, the injured are often left behind on
the battlefield awaiting a shift in investor
sentiment. Many of these mangled companies will not be able
to survive the shake out without an infusion of
capital (e.g. a large number of the Internet retailers,
as well as some of the upstart telecom names). That
is why when venturing into the melee in search of
survivors, investors should focus on companies with strong
cash reserves and earnings momentum.
Earnings momentum at Radware (RDWR 21)
is, indeed, impressive... The designer of Internet
traffic management solutions is expected to grow earnings
per share 400% this year and 250% in fiscal 2001...
At current price level, stock trades at 60 times
FY01 estimates of $0.35 a share, translating to a PEG
The stock experienced a 14% intraday
surge in price on Tuesday (closed with a 9% gain).
Believe that advance was driven by anticipation of strong
numbers by competitor F5 Networks (FFIV). While FFIV's
results were impressive -- revenues increased 562% and
earnings posted at $4.1 mln vs a yr-ago loss of $3 mln --
the earnings per share figure of $0.18 was only in
line with Wall Street expectations.
Failure of F5
Network to meet the expectations of the momentum crowd
could cause Radware to give back Tuesday's gains. But
Radware has its own numbers coming out soon, and we
believe the earnings will exceed expectations.
due to release Q1 results after the close next
Monday. Wall Street looking for a profit of $0.01 a share
for the quarter. Would expect Radware to at least
double up the number with a $0.02 a share profit,
though, earnings of $0.03 a share certainly not out of
the realm of possibility.
Going into earnings last
quarter, Radware pre-announced an upside surprise. The
company then went on to exceed upwardly revised
RDWR possess the two qualities admired most
by earnings traders: 1) the ability to deliver
significant upside surprises to estimates; 2) a history of
making substantial price gains in response to those
Stock has traded in a range of $17 5/8 to $87
since going public September 30 at $18 per share...
RDWR depending on this earnings report to nudge the
stock clear of the relatively flimsy support existing
at the $20 level.
The Tel Aviv-based company
sports a float of 5.6 million shares... Short Interest
is a nominal 170,000 shares or 0.8 days... Average
daily volume 416,000.