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What: Shares of Sourcefire (UNKNOWN:FIRE.DL) were on fire today, enjoying gains as great as 15%, after the company reported earnings.
So what: Revenue in the first quarter came in at $56.2 million, which resulted in non-GAAP earnings per share of $0.11. Those figures represent misses on both top and bottom lines, as analysts were expecting sales of $57.4 million and adjusted earnings of $0.12 per share.
Now what: Investors were braced for much worse following soft results from peers, so shares are rallying in relief that results weren't as bad as feared. Sourcefire fared well in its international and U.S. commercial businesses, which helped offset some weakness from federal government spending cuts. Guidance calls for second quarter revenue in the range of $60.5 million to $63.5 million.
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Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Sourcefire. 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.