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 Tyler Technologies (NYS: TYL) jumped 11% today after the company reported earnings.
So what: In the third quarter, revenue grew 21.6% to $93.8 million and net income grew 44% to $10.8 million, or $0.33 per share. Revenue beat expectations and earnings per share were $0.05 above the bar Wall Street had set.
Now what: Some of the revenue growth was due to acquisitions, but organic growth of 13% was still impressive. However, the stock still trades at 38 times next year's earnings, which is a steep price to pay for this level of organic growth. I'm going to sit out the move today and look for better value elsewhere.
Interested in more info on Tyler Technologies? Add it to your watchlist by clicking here.
The article Why Tyler Technologies' Shares Jumped originally appeared on Fool.com.
Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.