Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Sapient’s Shares 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.

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 Sapient (Nasdaq: SAPE  ) are up 16% today, after an impressive double beat on last night's third-quarter earnings. The company's fourth-quarter revenue outlook also came in higher than the analyst consensus.

So what: Sapient was expected to post revenue of $281.3 million and earnings per share of $0.13, but actual results were $299.3 in revenue and $0.20 in adjusted EPS. Suffice to say that this was more than analysts had been looking for. Fourth-quarter revenue guidance, with a $289 million to $294 million range, hits the consensus of $289 million at the low end, but this is slightly ($1 million to $2 million) less than the company had looked for, and was reduced due to the impact of Hurricane Sandy. The company also expects fourth-quarter non-GAAP operating margins to range from 14.3% to 15.3%, which hits this quarter's 14.7% right in the middle.

Now what: Sapient's P/E is still a reasonable 23.1 after the pop, and recent trailing 12-month free cash flow levels were running ahead of the company's net income, which make this a cheaper stock on a free cash flow basis. Although next quarter won't bring in the same level of revenue, Sapient's consistent progress in recent years earns it a closer look, at the very least.

Want more news and updates? Add Sapient to your Watchlist now.

Read/Post Comments (0) | Recommend This Article (1)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2103114, ~/Articles/ArticleHandler.aspx, 10/23/2016 6:08:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
SAPE.DL $0.00 Down +0.00 +0.00%
Sapient CAPS Rating: No stars