Why PROS Holdings Shares Popped
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 PROS Holdings have popped today by as much as 24% after the company reported better-than-expected earnings.
So what: Revenue in the fourth quarter added up to $32.7 million, which topped the high end of guidance along with the consensus estimate of $31.7 million. The same can be said about the bottom-line result, with non-GAAP earnings per share of $0.11 beating the $0.10 per share forecast.
Now what: CEO Andres Reiner said the company exceeded its internal expectations and hit record revenues thanks to a surge in new customer signings in its business-to-business industries. The company grew its employee base by 31% to roughly 700 people during the year to accommodate future growth. First quarter guidance calls for revenue of $32.7 million to $33.3 million. On top of that, Craig-Hallum upgraded its rating on the stock from hold to buy and increased its price target from $17.50 to $27 following the solid quarter.
Interested in more info on PROS Holdings? Add it to your watchlist by clicking here.
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The article Why PROS Holdings Shares Popped originally appeared on Fool.com.
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