WESTFORD, Mass.—Michael Szabados, the Chief Operating Officer of NetScout Systems Inc. (NASDAQ:NTCT), recently sold 6,500 shares of the company's common stock. The shares were sold on October 30 at a weighted average price of $21.3174, resulting in a total transaction value of $138,563.
This transaction was executed under a 10b5-1 plan, which Szabados adopted on June 11, 2024. Following the sale, Szabados retains ownership of 42,489 shares in the company. The sales price per share varied, ranging from $21.0400 to $21.5000.
In other recent news, NetScout Systems, Inc. reported a decline in its second quarter fiscal year 2025 earnings per share (EPS) to $0.47, compared to $0.61 in the same period last year. This decrease was accompanied by a 3% drop in revenue to approximately $191 million, attributed to backlog-related revenue and the divestiture of a test optimization business. Despite this, the company remains positive about its cybersecurity segment and reaffirmed its full-year non-GAAP revenue and EPS outlook.
In recent developments, the company's service assurance revenue decreased by 13% year-over-year due to reduced spending from service providers. However, Cybersecurity revenue grew by 3% in Q2, indicating potential growth in this area. The company's president and CEO, Anil Singhal, highlighted the introduction of the Omnis Cyber Intelligence solution in the DDoS space.
NetScout also reaffirmed its non-GAAP revenue outlook of $800 million to $830 million for FY 2025, and non-GAAP diluted EPS is expected to be between $2.10 and $2.30. The company plans to leverage technology to help customers navigate digital environments and has initiated cost reduction efforts, including a voluntary separation program, aiming to save $25 million annually. Despite the earnings miss, the company's focus on cybersecurity enhancements, cost management, and innovative technology solutions remains steadfast.
InvestingPro Insights
Following Michael Szabados' recent stock sale, it's worth examining NetScout Systems Inc.'s (NASDAQ:NTCT) financial position and market performance. According to InvestingPro data, NetScout has a market capitalization of $1.5 billion and reported revenue of $787.19 million in the last twelve months as of Q2 2025. The company boasts impressive gross profit margins of 77.08%, reflecting strong operational efficiency.
InvestingPro Tips highlight that NetScout holds more cash than debt on its balance sheet, indicating a solid financial foundation. This conservative financial approach may provide the company with flexibility for future investments or to weather potential market downturns. Additionally, management has been aggressively buying back shares, which could signal confidence in the company's future prospects and potentially support the stock price.
Despite these positive indicators, it's important to note that NetScout is not currently profitable, with a negative P/E ratio of -2.52. However, analysts predict the company will return to profitability this year, which could be a catalyst for future stock performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for NetScout Systems Inc., providing deeper insights into the company's financial health and market position.
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