Open Text Shares Jumped: 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 Open Text (NAS: OTEX) opened much higher today before rallying upwards of 19% after reporting second-quarter earnings last night.
So what: Revenue rose 20% to $321.5 million, with earnings per share of $1.39. Both top and bottom lines handily toppled the consensus estimates of $312.15 million in sales and $1.23 per share in profit.
Now what: Over half of revenue came from the Americas, while 40% was from Europe, Middle East, and Africa. The company recently appointed Mark Barrenechea as new CEO a month ago, as his predecessor John Shackleton retired. Licensing revenue in the quarter rose 13% to $89.7 million, while services, technology, and financial services saw the most demand.
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