Why NetSuite Shares Soared
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 NetSuite (NYS: N) soared today by as much as 18% today after the company reported better-than-expected third quarter earnings.
So what: Revenue jumped 31% to $79.8 million, with adjusted net income of $5.7 million, or $0.08 per share. Those figures topped analyst estimates of just $78 million in sales, and $0.06 per share profit. NetSuite also boosted guidance in the process.
Now what: The company now sees fiscal year 2012 adjusted earnings per share of $0.23 to $0.24, up from its previous guidance of $0.19 to $0.21 per share. Billings growth was strong at 34%, and NetSuite continues to be a beneficiary of the migration of software to the cloud. CEO Zach Nelson said that this year's investments have been one of the most successful initiatives in NetSuite's history.
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The article Why NetSuite Shares Soared originally appeared on Fool.com.Evan Niu, CFA has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Netsuite. 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.
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