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What: Shares of communications software specialist BroadSoft (NAS: BSFT) soared a whopping 30% on Tuesday after its quarterly results and guidance easily topped Wall Street expectations.
So what: The stock was slashed in early May after management offered a gloomy outlook for 2012, but today's wide second-quarter beat -- adjusted EPS of $0.33 versus the consensus of just $0.21 -- coupled with upbeat guidance naturally sparks optimism over a turnaround. In fact, revenue from Europe, the Middle East, and Africa doubled while revenue from the Americas grew a solid 16%, suggesting that demand for unified communications remains robust despite the slowing global economy.
Now what: For the full year, management now sees adjusted EPS of $1.30-$1.40 on revenue of $162 million-$167 million, versus the average analyst estimate of $1.25 and $161 million, respectively. "We are executing well and demand for our software and services continues to grow," said President and CEO Michael Tessler in a statement. Given today's massive rally and BroadSoft's 30-plus P/E, however, much of that growth might already be discounted into the stock.
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The article Why BroadSoft Shares Skyrocketed 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.
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