It sure feels like it. Since IPO'ing in the summer of '09, LogMeIn had already posted five consecutive "earnings beats" as a public company. Yesterday made it six-for-six, as LogMeIn reported:
- Full fiscal year revenue growth of 36%.
- Revenue growth that is accelerating, as LogMeIn clocked a 53% increase in Q4 alone (boosted by a non-recurring payment from Intel).
- Expanding profit margins -- big enough to convert that 53% revenue increase into a 110% rise in earnings per share. (Profits for the year were similarly spectacular, up 130%.)
As in quarters past, LogMeIn owes much of its success to Apple
Still, this growth looks priced into the stock already. Selling for 45 times earnings (or even 29 times last year's $32 million free cash flow haul), the stock seems awfully pricey relative to this year's projected sales growth (17%), long-term earnings growth expectations (21%), either one. Add in litigation costs from the firm's patent dust-up with rival 01 Communique, projected to cut earnings by around half next year's total, and the near-term picture looks even worse.
Maybe investors are right this time. And maybe I was right to time to log off of LogMeIn.
What's the best way to keep track of a company that's too shy to issue press releases? Add it to your Fool watchlist by clicking here.
Fool contributor Rich Smith owns shares of Google, but no longer owns LogMeIn. Intel is a Motley Fool Inside Value selection. Apple and Adobe Systems are Motley Fool Stock Advisor recommendations. The Fool has written puts on Apple. The Fool owns shares of and has bought calls on Intel. Motley Fool Options has recommended a diagonal call position on Adobe Systems. Motley Fool Options has recommended buying calls on Intel. The Fool owns shares of Apple.
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