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 retail and hospitality management expert Radiant Systems
So what: While Radiant's first-quarter sales merely met analyst expectations, expanding margins brought a bottom-line beat with $0.23 of non-GAAP earnings per share versus the Street's expectations of $0.20. Strong business momentum and increased visibility inspired management to raise full-year guidance across the board.
Now what: The company, which competes with MICROS Systems
The upside of that is the potential for margin leverage as management raises the roof. On the downside, Radiant is currently more focused on chasing growth opportunities than putting tighter spending policies in place, and may even go shopping for inorganic growth options. Then again, we're talking about a five-star CAPS entity (out of five) whose management has earned the respect of 96% of our CAPS players with an opinion on the stock.
I'd give Radiant the benefit of the doubt here -- the stock deserved to jump today.
Interested in more info on Radiant Systems? Add it to your watchlist.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.