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 FleetMatics Group (NYSE:FLTX) surged as much as 16% during intraday trading Thursday after the recently IPO'd fleet vehicle management specialist reported second-quarter earnings and guidance, which both exceeded expectations.
So what: For the quarter, FleetMatics' total revenue rose 39.1% year over year, to $42.5 million, which is in-line with estimates. Meanwhile, GAAP net income came in at $0.16 per share, and while that fell short of expectations for earnings of $0.19 per share, note adjusted income easily outpaced them at $0.23 per share.
In addition, while third quarter revenue and earnings guidance only forecast moderate sequential growth, the company issued upbeat full-year 2013 numbers, telling investors to expect full-year sales of between $171.2 million and $172.7 million, and adjusted earnings per share ranging from $0.79 to $0.82.
For reference, going into the report, analysts were expecting full-year earnings of just $0.73 per share on sales of $167.7 million.
Now what: Today's numbers are solid, but with shares of FleetMatics currently trading around 44 times next years' estimates, much of that excitement may already be built into the stock. Personally, I'll be staying on the sidelines to give FleetMatics a chance to prove it has what it takes to grow into its valuation and sustain this momentum over the long haul.