Radware (NasdaqGS:RDWR - News) is coming off of a record-setting quarter and estimates are on the rise. It is also the top rated company in its peer group, so is now a good time to get into this Zacks #1 Rank (Strong Buy)?
Radware offers network security and delivery solutions for virtual and cloud data centers. Customers include banks, government agencies, and other entities worldwide.
On Oct 26 Radware reported $42.2 million in quarterly revenue, a 15% year-over-year increase and a company record. Additionally, records were set for earnings per share and operating margins.
EPS came in at $0.28, a penny better than expected to give RDWR its fourth surprise in the past 6 quarters.
There is only 1 analyst polled by Zacks but his estimates are moving higher. This year's forecast is at $1.08, up 3 cents on the earnings news.
Next year's projection is up 9 cents, to $1.34. Radware earned $0.63 per share last year, so the expected growth rates are currently 71% and 24%, respectively.
Valuations & Comparisons Shares of RDWR are going for 24 times this year's estimate and with a long-term growth rate of 20%, the PEG is at 1.2. So, the growth is at a reasonable price.
Radware is the top rated internet software company, out of 22, on Zacks.com. With a net profit margin at 11.6%, compared to the industry average or 2.0%, and an ROE at 11.4%, more than twice the peer average, it is easy to see why.
Shares were up a bit on the earnings news and have held onto the new level. Right now though, shares are looking a bit oversold which could draw some attention from new buyers.