Quantcast

Why Allot Stock Jumped Tuesday


What happened

Shares of communication equipment company Allot (NASDAQ: ALLT) popped on Tuesday, rising as much as 14.1%. As of 3:26 p.m. EST, the stock was up 9.7%.

Shares of the Israel-based company were up because of the company's better-than-expected fourth-quarter earnings release, which featured strong, double-digit revenue growth and a narrower-than-expected loss per share.

A chart of a stock price moving higher

Image source: Getty Images.

So what

Allo t report ed fourth-quarter revenue of $26.9 million, up 16% year over year. This beat a consensus analyst estimate for revenue of $25.2 million. On a non- GAAP basis, Allot lost $0.01 per share during the quarter. On average, analysts had forecast a non-GAAP loss per share of $0.03 for the period.

With a strong finish to 2018, Allot's full-year revenue of $95.8 million was up 17% year over year.

"We are very pleased with our performance in 2018," said Allot CEO Erez Antebi in the company's fourth-quarter earnings release, "with revenues growing at a faster pace than we had originally expected."

Antebi cited solid performance from Allot's Deep Packet Inspection (DPI) business as one catalyst for last year's growth.

Now what

Looking ahead, the company said it expects 2019 revenue of $106 million to $110 million, representing 13% year-over-year growth based on the midpoint of this range. Analysts' consensus forecast for 2019 revenue was $104 million.

"As we enter into 2019, I have increased confidence in our long-term potential," said Antebi in the release. "Following our restructuring and changes, we are now executing better in sales, support and R&D and we look forward to continue to leverage these strengths to create continuing growth in 2019 and beyond."

10 stocks we like better than Allot Communications
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Allot Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of January 31, 2019

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Personal Finance , Stocks
Referenced Symbols: ALLT



More from Motley Fool

Subscribe







Motley Fool
Contributor:

Motley Fool

Market News, Investing












Research Brokers before you trade

Want to trade FX?