Why Corporate Executive Board's Shares Jumped


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 Corporate Executive Board jumped as much as 11% today after the company released earnings.

So what: Revenue jumped 48%, to $190.3 million, and net income was $11.2 million, or $0.33 per share. On an adjusted basis, earnings per share were $0.67, which was $0.03 ahead of estimates.

Now what: Management reaffirmed adjusted revenue guidance of $825 million to $845 million, which was a positive, because first-quarter revenue was a bit lighter than expected. Non-GAAP earnings are expected to be between $2.85 and $3.15, which is in line with the $3.01 from Wall Street. I'm not seeing anything terribly outstanding in the guidance, which is why I'm not buying today, because I think the stock's not a great value at 20 times 2013 earnings.

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The article Why Corporate Executive Board's Shares Jumped originally appeared on Fool.com.

Fool contributor Travis Hoium 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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