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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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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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