Israel's Radware Q3 revenue rises to record high on cloud demand

By Reuters News


Overview

  • Israel application security firm's Q3 revenue rose 12% yr/yr to record $84.4 mln

  • Non-GAAP diluted EPS slipped to $0.32, with results impacted by currency headwinds

  • Cloud annual recurring revenue grew 21% yr/yr to $107 mln


Outlook

  • Company says customer demand for application security solutions remains robust

  • Radware expects continued adoption of its cloud security platform with new AI capabilities


Result Drivers

  • STRONG CLOUD DEMAND - Co said robust customer demand for application security solutions drove cloud bookings and large deal activity

  • AI SECURITY FEATURES - Co said expansion of AI security capabilities contributed to increased customer adoption

  • CURRENCY IMPACT - Co said Israeli shekel appreciation adversely affected expenses in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$84.36 mln

$83.03 mln (2 Analysts)

Q3 Net Income

$2.64 mln

Q3 Gross Profit

$67.79 mln

Q3 Operating Income

$2.16 mln

Q3 Pretax Profit

$6.89 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Radware Ltd. is $30.50, about 14.1% below its October 27 closing price of $35.50

  • The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 25 three months ago


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.