How did NTCT's Q4 2024 EPS miss impact short-term trades?

Netscout Systems (NTCT) experienced a slight positive rebound in its stock price following the announcement of the Q4 2024 earnings miss, but the overall trend was one of decline, as evidenced by the fluctuating post-market and pre-market percentages and the subsequent trading days. The market's reaction to the earnings miss and the subsequent guidance for FY25 suggests a cautious outlook from investors, which is reflected in the stock's performance.

1. **Initial Reaction**: Upon the release of the earnings report, NTCT's stock price dropped by 5.6% on October 24, 2024, trading as low as $19.50, which was a significant decline from the last price of $19.31. This indicates that the market reacted negatively to the news of the earnings miss.

|code|Ticker|Name|Date|Post-Market Percentage Change|market_code|
|---|---|---|---|---|---|
|NTCT|NTCT.O|Netscout Systems|20240326|0|185|

|code|Ticker|Name|Date|EPS Surprise YoY|EPS Surprise|market_code|
|---|---|---|---|---|---|---|
|NTCT|NTCT.O|Netscout Systems|20240331|-50|0.01|185|
|NTCT|NTCT.O|Netscout Systems|20240630|62.5|-0.09|185|
|NTCT|NTCT.O|Netscout Systems|20240930|12.499999999999993|0.36|185|
|NTCT|NTCT.O|Netscout Systems|20241231|-70|0.03|185|

2. **Subsequent Rebound**: Following the initial drop, the stock experienced a slight rebound, with a post-market increase of 0.49% on November 8, 2024, and a pre-market increase of 0.78% on November 29, 2024. This suggests that some investors may have seen value in the stock after the initial panic, possibly due to the expectation of a bottom fishing opportunity or a correction in the stock price.

3. **Investor Cautiousness**: Despite the rebound, the stock remained under pressure, with a decrease of 2.46% on December 10, 2024. This indicates that investors were still cautious, possibly due to concerns about the company's future performance and the impact of the earnings miss on its financial health.
4. **Market Sentiment**: The overall sentiment around NTCT's stock remains cautious, with analysts expecting a modest EPS of $0.45 for the quarter, which is lower than the previous quarter's EPS. This suggests that the market is not expecting a strong recovery in the near term.

In conclusion, while there was some slight positive movement in NTCT's stock price following the earnings miss, the overall trend has been one of decline, with investors remaining cautious due to the impact of the earnings miss and the guidance for FY25.