NEW YORK (TheStreet) -- NetScout Systems (NTCT) jumped 14.4% to $36.49 Thursday, hitting a 14-year high of $36.70, after it beat estimates in both earnings and revenue in its third-quarter earnings report.
The software company reported earnings of 50 cents a share, beating the Capital IQ Consensus estimate of 42 cents a share by 8 cents. Revenues for NetScout rose 20.2% year over year to $110.6 million, beating the consensus estimates of $102.75 million for the quarter.
Along with the results, NetScout narrowed its guidance range and issued an upside guidance for 2014. The company now expects earnings between $1.48 and $1.50 a share for the year, compared to analysts' estimate of $1.45 a share. The new guidance calls for revenue between $392 million and $395 million, compared to analysts' estimate of $390.91 million.
NetScout's previous guidance called for between $1.40 and $1.50 a share in earnings and revenue between $385 million and $400 million.
"Our results this quarter were driven by key factors, including new product introductions for the enterprise sector, expanded deployments by service providers and increased traction with our complementary packet flow switch product line," CEO Anil Singhal said in a press release.
TheStreet Ratings team rates NETSCOUT SYSTEMS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NETSCOUT SYSTEMS INC (NTCT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."