Why Responsys Shares Skyrocketed

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 Responsys (NASDAQ: MKTG  ) have skyrocketed today by as much as 25% after the company reported better-than-expected earnings.

So what: Revenue in the fourth quarter came in at $44.7 million, most of which was subscription revenue, and topped the consensus estimate of $42.5 million. Non-GAAP net income was $3.7 million, or $0.07 per share, also ahead of Street forecasts of $0.05 per share in adjusted profit. CEO Dan Springer said the company continues to benefit from the shift away from mass marketing.

Now what: Guidance was also healthy, with first-quarter sales expected in the range of $43 million to $45 million. Fiscal 2013 sales should be $188 million to $192 million, with adjusted earnings per share of $0.16 to $0.18. That outlook is somewhat mixed, as the Street was modeling for just $185.8 million in sales but expecting more down below. The consensus estimate for fiscal 2013 adjusted earnings per share is $0.22.

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

The amount of data we store every year is growing by a mind-boggling 60% annually! To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. To get instant access to the name of this company transforming the IT industry, click here -- it's free.

 

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.

DocumentId: 2269791, ~/Articles/ArticleHandler.aspx, 7/11/2014 8:46:40 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...


Advertisement