Sapient Shares Popped: What You Need to Know

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 technology consulting firm Sapient (Nasdaq: SAPE  ) rose as much as 16% in early trading after reporting first-quarter financial results that easily beat estimates.

So what: Revenue rose 30% to $249.9 million while profit nearly doubled to $0.09 per share. Analysts had been expecting $231.1 million and $0.07 a share, respectively.

Now what: Management also guided above expectations. Second-quarter services revenue should come in between $249 million and $257 million, comfortably above Wall Street's $244 million target. The message? Technology buyers are back, and they're turning to experts to help them glean value from new hardware and software purchases. Keep an eye on this stock, Fool. Rising IT spending could lead to a longer-term rally in the shares of this five-star stock and its service-delivery peers, including IBM (NYSE: IBM  ) , Hewlett-Packard (NYSE: HPQ  ) , and CSC (NYSE: CSC  ) .

Interested in more info on Sapient? 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 owned shares of IBM 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 don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool owns shares of IBM and is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.


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