Shares of Globant (GLOB -2.02%) gained 41.3% in the first six months of the year, according to data from S&P Global Market Intelligence. The growth-dependent software stock took a sizable hit as coronavirus-related sell-offs rocked the market in March, but it closed out the first half of 2020 with strong gains thanks to strong business performance and industry tailwinds.
Globant has delivered two quarterly reports this year with sales and earnings that came in ahead of expectations. The company benefited from more business activity moving to the digital space and increasing demand for artificial-intelligence services.
The fourth-quarter results that Globant posted in February helped the stock hit a lifetime high in the month. The company reported adjusted earnings per share of $0.50 on sales of $140.14 million in the period, topping the average analyst estimate's call for earnings of $0.48 and posting revenue that was slightly better than the market's target. The stock plunged amid March's sell-off for the broader market, but it regained ground as the market recovered.
Globant then reported first-quarter results in May, once again delivering sales and earnings that topped the market's expectations. The company posted earnings per share of $0.64 on sales of $191.6 million, surpassing the average analyst's target for earnings of $0.62 on revenue of $188.79 million.
Globant stock has continued to rise in July's trading. Shares are up roughly 4.5% in the month so far.
Globant expects to post sales of at least $179 million in the second quarter, good for year-over-year growth of 13.6%. The company's adjusted operating margin for the period is expected to be between 12.5% and 14.5%, and adjusted earnings per share is expected to be at least $0.47 based on an outstanding diluted share count of 38.2 million in the quarter.
Globant trades at roughly 65.5 times this year's expected earnings and 8.1 times expected sales.