What happened

While markets are rising today, shares of HireRight Holdings (HRT -0.42%), a provider of background screening services, are downright skyrocketing. The company, which reported fourth-quarter earnings yesterday after the market closed, beat analyst estimates on both the top and bottom lines, to the delight of investors. This marks the first quarterly report for the company since its initial public offering in November.

As of 9:51 a.m. ET, shares of HireRight Holdings are up 27.6%.

So what

Booking revenue of $198.5 million, HireRight Holdings exceeded analyst expectations that the company would report sales of $183.4 million. But that's not the only way in which the company's top line is impressing investors today -- its Q4 2021 revenue represented a year-over-year increase of 33%. 

Looking farther down the income statement, investors are finding additional reasons to rejoice. HireRight Holdings provided a surprise in terms of profitability, reporting Q4 2021 adjusted earnings per share of $0.32 -- considerably higher than the $0.07 that analysts had estimated the company would report. In addition, the company's adjusted earnings per share (EPS) in the recently completed quarter represents a notable turnaround from the adjusted EPS loss of $0.06 that the company had in Q4 2020. 

A person reads a CV while interviewing an applicant remotely.

Image source: Getty Images.

It's not just the look back that has investors happy today, though. During its earnings presentation, HireRight Holds provided auspicious 2022 guidance. The company projects revenue of $805 million to $820 million and adjusted net income of $105 million to $115 million. Should it achieve the midpoints of its revenue and net-income forecasts, it will represent year-over-year growth of 11% and 46%, respectively.

Now what

After a review of its recent earnings report, HireRight Holdings seems to be off to a great start as a publicly traded company. It's important to remember, however, that investing in newly public companies carries a fair degree of risk, so prospective investors should exercise caution before clicking the buy button.