Radware Ltd. (RDWR) on Monday raised its earnings guidance for the fourth quarter on the back of sustained momentum in sales and industry-high gross margins. The company now expects adjusted profit to range between 19 cents and 21 cents per share, compared to the earlier prediction of 15 cents to 16 cents per share. The revised guidance was well above the Zacks Consensus Estimate of 9 cents per share.
The company also lifted its revenue guidance for the fourth quarter to reach approximately $31 million to $32 million, compared to the previous forecast of $30 million. The company recorded revenues of $24.9 million in the year-ago period. Radware also posted strong results in the third quarter of 2009, with adjusted earnings of 6 cents per share topping the Zacks Consensus Estimate by 4 cents. The better-than-expected performance was driven by a 24% year-over-year growth in sales to $29.2 million as the company increased its market share through key customer wins, and several new distribution and reseller partnerships.
The full-year Zacks Consensus Estimate is currently pegged at a loss of 6 cents per share, which has improved by 7 cents over the past 2 months. Moreover, the Zacks Consensus Estimate for 2010 currently stands at a profit of 12 cents per share, which moved up by 12 cents over the past 2 months.
Shares of Radware gained nearly 4% after the positive news to close at $14.77 yesterday on the Nasdaq. The stock also reached a 2-year high of $15.49 earlier in the same day.
Radware develops networking solutions that allow its customers to deliver mission-critical applications between data centers and remote locations, over all critical points in the network. The company’s Application Delivery and Network Security solutions enable customers to manage network infrastructure, bypass systems failures, scale application performance, and secure Internet protocol (IP) traffic.