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What: Shares of Acme Packet (NASDAQ:APKT) have popped today by as much as 16%, after the company reported earnings last night.
So what: Revenue fell 8% to $65.3 million, which resulted in non-GAAP net income of $4.7 million, or $0.07 per share. Those figures came in right on target with analyst expectations. The company also updated its full-year guidance, but that likely didn't spark the rally.
Now what: The non-GAAP earnings per share outlook narrowed from a prior range of $0.43 to $0.47 per share to a $0.44 to $0.46 per share target, squeezing in by a penny on each side. The optimism could be simply relief that sales came in on target, as opposed to missing forecasts, especially within the context that carrier customers have been cutting back capital expenditures. However, the industry continues to inch toward Voice over LTE, or VoLTE, which is good news for Acme Packet.
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Evan Niu, CFA has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Acme Packet. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.