Why inContact 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 inContact have popped today by more than 21% after the company reported better-than-expected earnings.
So what: Revenue in the fourth quarter hit a new record of $30.7 million, which resulted in a net loss of $0.01 per share. Both figures topped consensus estimates, which had set investor expectations of $29.3 million in sales and a net loss of $0.03 per share. CEO Paul Jarman also said the company booked its largest deal in the company's history during the quarter.
Now what: This was the ninth consecutive quarter of revenue increases in both inContact's telecom and software segments. Gross margin also increased meaningfully to 60% during the quarter. The company closed out the quarter with 62 contracts. Following the results, Roth Capital upgraded its rating on the stock from neutral to buy while boosting its price target from $6.50 to $7.50.
Interested in more info on inContact? Add it to your watchlist by clicking here.
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The article Why inContact 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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