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.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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