Parametric Technology Shares Soared: What You Need to Know
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 Parametric Technology (NAS: PMTC) are soaring higher today to the tune of 29% after the company reported strong fourth-quarter earnings.
So what: Fourth-quarter revenue added up to $341.3 million, which turned into $0.47 in earnings per share. Both figures toppled consensus estimates, which were $324.9 million in sales and $0.43 in earnings per share.
Now what: The company has now begun providing forward-looking guidance, and sees first-quarter 2012 revenue in the range of $305 million to $320 million and earnings per share of $0.28 to $0.32. For the fiscal year 2012, Parametric is forecasting roughly $1.3 billion in sales and earnings per share of $1.48 to $1.52. Following up the strong quarter, ThinkEquity has initiated coverage on the stock with a "buy" rating and a $25 price target.
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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.