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What's happening?
Shares of NetSuite (N) are trading 12% higher today after the company released third-quarter earnings ahead of Wall Street's expectations yesterday evening
Why it's happening
NetSuite's third-quarter top line of $143.7 million was better than the $141 million Wall Street had modeled, and was a 34% improvement over the year-ago quarter, but its adjusted earnings of $0.11 per share stole the show -- analysts had only expected the company to earn $0.04 in adjusted EPS. GAAP results were far lower, as the company lost $0.38 per share due to high one-time costs.
NetSuite now says that it will generate between $154 million to $156 million in revenue and $0.08 to $0.10 in adjusted EPS for the fourth quarter. NetSuite executives also upgraded their full-year guidance, which increased on the top line from a $545 million to $550 million range to a new range of $552 million to $554 million, with full-year adjusted EPS projected to range from $0.31 to $0.33, up from an earlier range of $0.24 to $0.26.
Fourth-quarter guidance now comes in slightly ahead of Wall Street's expectations for $152.4 million in revenue, but merely hits analysts' EPS expectations of $0.10 on the high end. However, full-year guidance was the real standout -- analysts had only expected NetSuite to generate $548.8 million in revenue and $0.26 in EPS for 2014.
