What happened
Computer collaboration company LogMeIn (LOGM), owner of such popular services as LastPass, GotoMeeting, and of course LogMeIn, is looking even more popular after reporting earnings last night. As of 2:35 p.m. EDT, LogMeIn stock is up 10.5% -- and for good reason .
The company just reported $1.40 per share in pro forma earnings; Wall Street had expected earnings of just $1.34. LogMeIn's $309.6 million in third-quarter sales likewise trumped analysts' estimated $302.9 million.
Hey! Did you know LogMeIn owns LastPass now? And that it just beat earnings? Image source: Getty Images.
So what
Not all the news was great. When calculated according to generally accepted accounting principles (GAAP), LogMeIn actually earned only $0.24, net. Still, those two dozen pennies that LogMeIn earned were up 26% from last year's Q3, rising nearly twice as fast as the company's sales growth (up 15% ).
Cash production was also strong -- $65.7 million for the quarter, which was more than 5 times the company's reported net income -- albeit not as strong as the $77 million that LogMeIn generated in the year-ago quarter.
Now what
The future isn't looking quite as bright for LogMeIn -- but perhaps bright enough relative to expectations. In new guidance, management told investors to expect to see more than $305 million in revenue this current fourth fiscal quarter. (Wall Street was only looking for $300 million in sales). Management further advised that it hopes to earn $1.41 or $1.42 per share (only pro forma, unfortunately) -- likewise ahead of Wall Street's prediction of $1.35 per share. GAAP profits should be $0.10 or $0.11 a share.
Thus, by year end, investors should be looking at full-year sales of approximately $1.2 billion, pro forma profits of $5.33 or better, and GAAP net income of $1.03 or $1.04 per share.
