Why Pegasystems Shares Popped

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 Pegasystems (NASDAQ: PEGA  ) have popped today by upwards of 20% after the company reported earnings with strong guidance.

So what: Revenue in the fourth quarter totaled $143.8 million, which absolutely crushed the $122.6 million in sales that investors were expecting. The bottom line told a similar story, with the non-GAAP earnings per share of $0.65 blowing way past the consensus estimate of $0.33 per share in profit. CEO Alan Trefler said the company saw record bookings in the fourth quarter from both new and existing clients.

Now what: Guidance for 2013 also came out better than expected, with full-year revenue expected to be $510 million. Non-GAAP earnings per share for the year should be approximately $1.20, after excluding stock-based compensation and intangible asset amortization. Street analysts would have been happy with just $489 million in sales and $0.93 per share in profit.

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

With the U.S. relying on the rest of the world for such a large percentage of our goods, many investors are ready for the end of the "made in China" era. Well, it may be here. Read all about the biggest industry disrupters since the personal computer in our free report: "3 Stocks to Own for the New Industrial Revolution." Just click here to learn more.

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

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: 2269812, ~/Articles/ArticleHandler.aspx, 9/25/2016 11:42:58 AM

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 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

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

9/23/2016 4:00 PM
PEGA $29.27 Down -0.22 -0.75%
Pegasystems CAPS Rating: ****