Overview
A10 Networks Q2 revenue grows 15% yr/yr, beating analyst expectations
Non-GAAP net income rises in the qtr
Co repurchased shares and paid dividends, returning $8.3 mln to investors
Result Drivers
SECURITY DEMAND - Increased demand for security and infrastructure solutions contributed to revenue growth, per CEO Dhrupad Trivedi
AI INVESTMENTS - Revenue benefited from AI infrastructure investments and data center expansions
OPERATIONAL DISCIPLINE - Strong operational discipline helped improve profitability and cash flow
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$69.38 mln
$66.20 mln (6 Analysts)
Q2 Net Income
$10.54 mln
Q2 EBIT
$10.31 mln
Q2 Gross Profit
$54.71 mln
Q2 Operating Expenses
$44.40 mln
Q2 Pretax Profit
$11.93 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "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 A10 Networks Inc is $22.00, about 17.4% above its August 4 closing price of $18.17
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nBw5pkZg5a
(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.)