JDA Software Shares Popped: 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 JDA Software (NAS: JDAS) soared 22% in early trading after the company reported better than expected third-quarter results. The company also filed suit against Credit Suisse (NYS: CS) for failing to fund JDA's proposed acquisition of i2 Technologies, despite earlier commitments.
So what: Q3 revenue rose 8% to $171.6 million while adjusted profits ballooned 36% to $0.64 a share. Analysts had been expecting $167.2 million and $0.50 a share, respectively, according to data compiled by Yahoo! Finance.
Now what: Mix in what could be a big payout from Credit Suisse and today's action is understandable. According to Bloomberg, JDA says that Credit Suisse's reneging on $450 million in financing for the original i2 deal -- the two companies would finally combine in 2010 -- caused at least $100 million in damages. Do you believe JDA will be able to collect? Would you buy shares at current prices? Weigh in using the comments box below.
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At the time this article was published Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.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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