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: Spending-management software maker Ariba
So what: Revenue was up 20% in the fiscal first quarter to $90.4 million, and earnings per share bolted higher to $0.47. The earnings number was skewed higher by the $51 million sale of the company's outsourcing business to Accenture.
Now what: Beating analyst estimates is great, but with a $2.6 billion market cap I would like to see a lot more earnings and a lot more revenue before getting too excited about this stock. Also, the company's earnings forecast of $0.17 to $0.19 per share came in at the low end of Wall Street's expectations. There just isn't enough value here for this Fool to be buying shares today.
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