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Synchronoss Technologies Shares Popped: What You Need to Know

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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 Synchronoss Technologies (Nasdaq: SNCR  ) rose a little more than 10% in intraday trading after the company beat Wall Street's expectations for first-quarter results, raised full-year revenue guidance, and announced a $20 million stock repurchase program.

So what: Non-GAAP revenue rose 52% to $53.4 million while adjusted profit rose 43% to $0.20 per share. Both results beat estimates, but it was the higher guidance that appeared to please investors most. Management now expects the company to book $218 million to $223 million in 2011 revenue, up from an earlier estimate of $214 million to $220 million.

Now what: For as volatile as the stock has been, long-term holders of Synchronoss have to be happy today. The stock popped more than 10% in a day twice after December's news that company founder James McCormick had adopted a 10b5-1 plan to programmatically sell some of his shares.

Even so, it'll take a lot to keep the rally going. At more than 270 times earnings, Synchronoss not only trades for a premium to the industry average but also to competitors Amdocs (NYSE: DOX  ) , CSG Systems (Nasdaq: CSGS  ) , and NeuStar (NYSE: NSR  ) .

Interested in more info on Synchronoss Technologies? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. You can try any of our Foolish newsletter services free for 30 days.

Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. 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 is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.

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  • Report this Comment On May 13, 2011, at 10:46 AM, ACM666 wrote:

    I like the framework of these articles (event, what happened, what it means, what to do) but there is typically no useful information or insightful analysis between the headings.

    It would be great if you could either add some incremental value relative to other robot generated news stories pumped out after an event or...consider not putting out an article at all.

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