November 1, 2012
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 Internet security software specialist AVG Technologies (NYSE: AVG ) soared 14% today after its quarterly results and guidance topped Wall Street expectations.
So what: AVG shares have been slumping recently on concerns over weak industrywide demand, but a strong third quarter -- adjusted EPS more than doubled to $0.43 on revenue growth of 34% -- coupled with upbeat guidance for the full year naturally eases some of those concerns. AVG even increased its active user count to 143 million -- including 20 million mobile users -- from 106 million in the year-ago period, giving investors plenty of good vibes over its growth potential going forward.
Now what: Management now sees full-year adjusted EPS of $1.34 to $1.36 on revenue of $354 million to $358 million, up nicely from its prior view of $1.15 to $1.20 and $336 million to $344 million. "Our latest line of products and services focuses on protection, performance and privacy as well as the introduction of free phone support for even our free customers," said CEO J.R. Smith. "Considering our strong execution, we are again raising our outlook for the fiscal year 2012." More important, with the stock still off about 25% from its 52-week highs, there might even be some room left to profit from that operating momentum.
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