Riverbed Technology, Inc. (NASDAQ:RVBD) Pronounces Weak 4Q Forecast


Dallas, Texas 10/18/2013 (Financialstrend) – Riverbed Technology, Inc. (NASDAQ:RVBD) has predicted that its revenue will continue to disappoint in 4Q. It sees 4Q revenues coming in lower and predicts an 8% to 12% dip in a quarter on quarter compare. Following the announcement the stock has shed close to 1.1% over the past week of trading. This is a continuation of depletion in its market value over the past few months. It has shed 8.9% of its share value over the past one month and by close to 35% depreciation in the past 12 months.

Earlier, in anticipation of the 3Q results the shares of the telecom equipment vendor had rallied upwards through the day on October 9.  As the 3Q operation result details came out, the stock picked up valuation further. The earnings per share for the quarter were $0.32. This represented a $0.07 better performance in comparison to street estimates. It reported revenues of $177 million for the quarter which translated to a 9.4% increase over 3Q12. Analysts had estimated revenue to hover around $173 million mark.  The better than expected performance boosted the share valuation further only to reverse course on weak guidance to 4Q.

The stock performance would have left many investors of Riverbed Technology, Inc. (NASDAQ:RVBD) confused. The company has been attempting to do its bit to regain confidence of the investors. Earlier in the year it had spent close to $500 million to buy back shares from the market in an attempt to boost the sagging valuation of the stock. In spite of these efforts the stock has shrunk by 0.84% over the past six months.

As of close of business on October 16, the stock was trading at $14.19 per share which translates to a 1.63% increase over its 52 week low valuation. At current valuations, the stock has a market cap of $2.33 billion.

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