Why Sourcefire Shares Caught Fire

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 Sourcefire (UNKNOWN: FIRE.DL  ) were on fire today, enjoying gains as great as 15%, after the company reported earnings.

So what: Revenue in the first quarter came in at $56.2 million, which resulted in non-GAAP earnings per share of $0.11. Those figures represent misses on both top and bottom lines, as analysts were expecting sales of $57.4 million and adjusted earnings of $0.12 per share.

Now what: Investors were braced for much worse following soft results from peers, so shares are rallying in relief that results weren't as bad as feared. Sourcefire fared well in its international and U.S. commercial businesses, which helped offset some weakness from federal government spending cuts. Guidance calls for second quarter revenue in the range of $60.5 million to $63.5 million.

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

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