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Why NetSuite Shares Soared

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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 NetSuite (NYSE: N  ) soared today by as much as 18% today after the company reported better-than-expected third quarter earnings.

So what: Revenue jumped 31% to $79.8 million, with adjusted net income of $5.7 million, or $0.08 per share. Those figures topped analyst estimates of just $78 million in sales, and $0.06 per share profit. NetSuite also boosted guidance in the process.

Now what: The company now sees fiscal year 2012 adjusted earnings per share of $0.23 to $0.24, up from its previous guidance of $0.19 to $0.21 per share. Billings growth was strong at 34%, and NetSuite continues to be a beneficiary of the migration of software to the cloud. CEO Zach Nelson said that this year's investments have been one of the most successful initiatives in NetSuite's history.

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

 
 
 

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  • Report this Comment On October 26, 2012, at 6:55 PM, tomd728 wrote:

    And how 'bout that P:E do we swing to positive now from -129 ? I love the application and it's use in any business but if N sells off hard on Monday don't be surprised.

    N is an "on the come" stock as any I have seen like the usual suspects at MF don't already know.

    I look forward to the comments and thoughts here as I'm not that bright.

    Best investing to all MFs (ooops) Motley Fools.

    Tom Durkin

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