Why Informatica's Shares Popped

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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 Informatica (NAS: INFA) rose more than 10% today after the company reported earnings.

So what: Revenue fell slightly to $190.5 million compared with a year ago, in line with what analysts had expected. The company reported net income of $20.1 million, or $0.29 per share on an adjusted basis, which was a penny ahead of expectations.


Now what: Informatica has beaten expectations each of the last four quarters, and this quarter the numbers didn't beat expectations by much. I'm looking more at the falling revenue as a red flag right now, and considering the company's 2012 P/E ratio of 22, I think the stock is expensive. I'd like to see more value before jumping on this bounce or revenue growth at the very least.

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

The article Why Informatica's Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter serviceshave recommended buying shares of Informatica. 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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