Is LogMeIn
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.
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