Why Parametric Technology 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 Parametric Technology (NAS: PMTC) have popped by upward of 12% after the company reported second-quarter earnings.
So what: Revenue was $301.1 million and earnings per share added up to $0.30. CEO James Heppelmann said that while management was disappointed with the results, the company has market momentum and its sales pipeline should grow over time.
Now what: Guidance for the third quarter sees revenue of $300 million to $315 million, which is actually lower than expected. The same goes for full-year adjusted earnings per share, which should be in the ballpark of $1.42 to $1.50. While the results left a little to be desired, this was mostly expected as the company had issued a warning earlier this month, so it seems that the figures weren't as bad as investors thought they would be.
Interested in more info on Parametric Technology? Add it to your watchlist byclicking here.
At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.