A10 Networks Q2 revenue beats estimates; FY outlook raised
ATEN•Full-year outlook raised
A10 Networks raised its full-year revenue growth outlook to 12% to 14% from 10% to 12% previously.
The company now expects full-year EPS growth of 14% to 16%, up from 12% to 14%.
Analyst view and valuation
The current average analyst rating on the shares is buy, with 4 "strong buy" or "buy" recommendations, 2 "hold" ratings and no "sell" or "strong sell" ratings.
The median 12-month price target for A10 Networks is $34.00, about 10.7% above its August 4 close of $30.70.
The stock recently traded at 28 times next-12-month earnings, versus 25 times three months ago.
Drivers behind the quarter
A10 said increased demand for next-generation networking supporting AI-related infrastructure drove revenue growth.
The company also cited a new multi-year agreement with Microsoft as validation of its value in scaled AI deployments.
