Why Higher One Holdings, Inc. Shares Skyrocketed
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 Higher One Holdings, jumped by nearly 20% Thursday after the company reported better-than-expected third-quarter results.
So what: Quarterly revenue rose 11.5%, to $57.1 million, which translated to adjusted earnings of $0.14 per share. Analysts, by contrast, were looking for earnings of just $0.11 per share on sales of $53.74 million.
Now what: Even so, while Higher One management did state they have some visibility into the fourth quarter, they're still sticking to their previous decision in not providing forward guidance, as uncertainties remain for their business going into 2014.
The stock's not particularly expensive trading around 15 times both last year's earnings and forward estimates; but, personally, I'd prefer to remain on the sidelines until investors receive a little more information on Higher One's long-term prospects.
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The article Why Higher One Holdings, Inc. Shares Skyrocketed originally appeared on Fool.com.Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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