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: Shares of JDA Software (Nasdaq: JDAS) fell 10% today after the company released earnings and outlook.
So what: Adjusted earnings per share of $0.61 actually beat estimates of $0.56, but investors are focusing on the 2011 outlook. The company expects earnings per share to come in between $2.00 and $2.20, and analysts were hoping for more, expecting $2.40 per share.
Now what: Management said an uncertain landscape in Europe led the company to give a more cautious outlook. Weak margins in its consulting services business aren't expected to turn around quickly during 2011. Still, with a price of $28.30 as of this writing, JDA is trading at a decent price considering the 58% jump in revenue this quarter. I am cautiously optimistic the valuation gives investors a nice entry point into this stock, as long as conditions don't deteriorate further.
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