Why Sychronoss Shares Took Off
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 Synchronoss Technologies are soaring 20% higher today after reporting earnings that came in ahead of expectations, combined with a solid set of forward guidance.
So what: Wall Street was looking for $0.25 per share on $70.1 million in revenues for Synchronoss' fourth quarter, but the company surprised on the upside with $73.8 million in revenue and $0.29 per share in adjusted earnings. The company's guidance was in the $330 million to $350 million range for the full year of 2013, and non-GAAP revenue in the $75 million to $78 million range for the current quarter, with EPS in the range of $0.27 to $0.29. The top-line estimate for the current quarter is slightly ahead of the $74.3 million Wall Street sought, but its EPS range only hits the consensus of $0.29 on the high end. For the full year, analysts had expected $330.1 million and $1.29 in EPS.
Now what: Synchronoss has impressed the market today with bullish expectations, and its P/E remains at the lower end of the past year's range. It might be worth keeping an eye on the stock, which is known for wild moves, but I wouldn't jump in after this jump.
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The article Why Sychronoss Shares Took Off originally appeared on Fool.com.
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