Why Sourcefire Soared

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Click Here Now

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 security software specialist Sourcefire (Nasdaq: FIRE ) shot up by as much as 15% today after the company reported earnings yesterday.

So what: First-quarter sales jumped 50% to $46.3 million, which turned into an adjusted profit of $0.11 per share. Both top and bottom lines posted a healthy beat compared to the $41.6 million in revenue and $0.08 in per-share profit that the Street was expecting.

Now what: International sales stole the show, growing 87% in the quarter, far outpacing domestic commercial growth of 28%. Next quarter, Sourcefire expects revenue to be between $46.5 million and $48.5 million, with adjusted earnings per share in the range of $0.12 to $0.14. UBS even issued a note that Sourcefire is a strong candidate to be acquired by a larger competitor, expecting it would fetch between $53 and $60 per share.

Interested in more info on Sourcefire? Add it to your watchlist by clicking here.

More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Sourcefire. The Motley Fool has a disclosure policy.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.