: NetScout’s stock drops 20% after full-year outlook reduced

NetScout Systems Inc. NTCT shares fell in the extended session Monday after the cybersecurity company cut its outlook for the year, citing slower order conversions. NetScout shares dropped more than 20% after hours, following a 3.5% rise to close the regular session at $27.59. For the full-year, NetScout expects adjusted earnings of $2 to $2.20 a share, down from its previous $2.20- to $2.32-a-share estimate, on revenue of $840 million to $860 million, below its previous forecast range between $915 million and $945 million. Analysts had forecast $2.26 a share on revenue of $922.6 million. “We believe this is related to industry and economic headwinds facing our customers that began to affect our revenue in the last month of the second fiscal quarter and is expected to impact the second half of fiscal year 2024,” said Anil Singhal, NetScout chief executive, in a statement. The company said it expects adjusted second-quarter earnings of 60 cents to 62 cents on revenue of $195 million to $197 million. Analysts surveyed by FactSet had forecast 54 cents a share on revenue of $223.6 million.

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