Why Informatica's Shares Popped

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 Informatica (NAS: INFA) rose more than 10% today after the company reported earnings.

So what: Revenue fell slightly to $190.5 million compared with a year ago, in line with what analysts had expected. The company reported net income of $20.1 million, or $0.29 per share on an adjusted basis, which was a penny ahead of expectations.

Now what: Informatica has beaten expectations each of the last four quarters, and this quarter the numbers didn't beat expectations by much. I'm looking more at the falling revenue as a red flag right now, and considering the company's 2012 P/E ratio of 22, I think the stock is expensive. I'd like to see more value before jumping on this bounce or revenue growth at the very least.

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The article Why Informatica's Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter serviceshave recommended buying shares of Informatica. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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