What: Shares of Barracuda Networks Inc. (NYSE:CUDA) were flying higher today after the software services provider blew past estimates in its fourth-quarter earnings report. As of 12:25 p.m. ET, the stock was up 16.7%.
So what: The company posted a per-share profit of $0.15, nearly double expectations of $0.08, while revenue jumped 16% to $83.7 million easily beating the consensus of $80.9 million. The results were a solid improvement over the quarter a year ago when Barracuda posted a per-share profit of $0.07. CEO BJ Jenkins said, "We continue to build momentum in our core focus areas and are pleased with the initial results of our efforts to capitalize on the fastest-growing trends in our markets." Barracuda's active subscriber count also grew by 14% from the quarter a year ago.
Recent improvements to the company's suite of products include launching Barracuda essentials for Office 365 and an enhanced web application security portfolio.
Now what: For the current year, Barracuda's guidance was also strong as it expects EPS of $0.45-$0.50, better than analyst estimates of $0.43. However, revenue for the current year is projected at $337 million-$342 million, less than analyst expectations of $347.2 million.
Considering Barracuda shares had fallen sharply in each of its three previous earnings reports, it was refreshing to see the company post a solid earnings beat and better-than-expected guidance. After declining more than 50% from their peak last year, shares seem more reasonably valued now. Other metrics, like an improving renewal rate to 96%, seem to indicate that Barracuda has put those tough times behind it.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.