Please ensure Javascript is enabled for purposes of website accessibility

Why MicroStrategy Stock Popped Tuesday

By Evan Niu, CFA - Jul 28, 2015 at 11:48AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

12:30 p.m. ET: A solid quarter pushed the enterprise analytics and security vendor's stock up more than 15%.

What's happening: Shares of enterprise analytics and security vendor MicroStrategy (MSTR -0.25%) were up 15.7% as of 12:30 p.m. Tuesday following an upbeat earnings report that easily topped the Street's expectations.

Why it's happening: Revenue in the second quarter came in at $132.9 million, a 6% decline from a year ago but well ahead of the $128 million forecast. Earnings of $1.95 per share also crushed the consensus of $1.51 in earnings per share. The company also appointed a new CFO, Phong Le, effective in late August, following the previously announced retirement of current CFO Douglas K. Thede.

MicroStrategy has been able to successfully reduce costs in a big way, which boosts margins all the way to the bottom line. Case in point, even though revenue fell, gross profit actually increased compared to a year ago. Operating expenses also fell by nearly 40%. During the quarter, MicroStrategy announced the general availability of its MicroStrategy 10 Secure Enterprise offering, which includes a slew of new features catered toward enterprise analytics. The company also debuted a new software development kit for third-party developers to integrate security capabilities into their mobile apps. All around, it was a solid quarter that is pushing shares to fresh 52-week highs.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool recommends MicroStrategy. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MicroStrategy Incorporated Stock Quote
MicroStrategy Incorporated
$324.38 (-0.25%) $0.82

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.