Why Sourcefire Soared

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of security software specialist Sourcefire (NAS: FIRE) shot up by as much as 15% today after the company reported earnings yesterday.

So what: First-quarter sales jumped 50% to $46.3 million, which turned into an adjusted profit of $0.11 per share. Both top and bottom lines posted a healthy beat compared to the $41.6 million in revenue and $0.08 in per-share profit that the Street was expecting.


Now what: International sales stole the show, growing 87% in the quarter, far outpacing domestic commercial growth of 28%. Next quarter, Sourcefire expects revenue to be between $46.5 million and $48.5 million, with adjusted earnings per share in the range of $0.12 to $0.14. UBS even issued a note that Sourcefire is a strong candidate to be acquired by a larger competitor, expecting it would fetch between $53 and $60 per share.

Interested in more info on Sourcefire? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Sourcefire. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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