Pegasystems Shares Skyrocketed: 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 Pegasystems (NAS: PEGA) are spreading their wings and flying today, up by as much as 31% after the company reported earnings last night.

So what: Revenue in the fourth quarter totaled $115.3 million, which led to earnings per share of $0.16. Both figures easily trampled the market's expectations of less than $105 million in sales and a nickel per share in profits.

Now what: Guidance for next year was a little mixed. The $500 million revenue forecast came in better than expected, but the $0.91 per share expected profit was a little shy of estimates. CEO Alan Trefler noted that the company scored some significant customer wins in the quarter, including one of the largest global wireless carriers and a leading domestic cable TV provider, among others. The company is bullish on its 2012 prospects as it grows its product portfolio and starts the year off with a strong pipeline

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At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Pegasystems. 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.

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