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 ClickSoftware Technologies Ltd. (NASDAQ: CKSW ) rose more than 21% Monday after the company increased fourth-quarter revenue expectations.
So what: Quarterly revenue is now expected to be approximately $30.5 million, handily exceeding the company's own guidance for sales of $26 million to $28 million. Better yet, based on preliminary operating cost results, ClickSoftware says it expects to achieve profitability in Q4 as well. By contrast, analysts were expecting ClickSoftware to turn in a $0.04-per-share loss on sales of $26.02 million.
Now what: ClickSoftware Founder and CEO Dr. Moshe BenBassat said, "We saw a remarkable improvement in our business during the fourth quarter, leading to strong results that exceeded expectations."
To be sure, BenBassat also pointed out that the company added 19 customers in the quarter, 50% of which will use ClickSoftware's promising cloud-based offerings. As a result, and noting this should go a long way toward boosting ClickSoftware's important recurring revenue stream going forward, I think investors would be wise to at least add it to their watch lists. If ClickSoftware can indeed achieve sustained profitability over the long-term, the stock could still reward patient investors handsomely.
We just robbed Wall Street: Here's how
ClickSoftware could be a big winner if it can continue to grow, but that doesn't mean it's the only promising growth stock our market has to offer.
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have done it before with the likes of Amazon.com and Netflix. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.