Why Synchronoss Shares Surged
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 wireless subscriber activation provider Synchronoss Technologies (NAS: SNCR) soared 17% on Thursday after its quarterly results topped Wall Street expectations.
So what: Synchronoss shares were battered in early May after management slashed its full-year-revenue forecast on weak demand, but an impressive second quarter -- adjusted EPS of $0.29 versus the consensus of $0.26 -- is triggering hopes for a near-term turnaround. In fact, revenue soared 22% on rebounding demand for its phone billing technology from major telecom companies, prompting investors to raise their growth expectations on the stock.
Now what: Don't let today's pop keep you from looking into Synchronoss. "We believe it is increasingly clear that consumers will look to carriers for cloud-based content management solutions that can and will co-exist with those of major operating systems vendors," founder and CEO Stephen Waldis said in a statement. "Synchronoss is becoming entrenched as a key enabler of carriers' cloud strategies." More important, with the stock still off about 45% from its 52-week high, there's more than enough room to buy into that bullishness.
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The article Why Synchronoss Shares Surged originally appeared on Fool.com.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.