Informatica Earnings: Here’s Why the Stock is Popping

Informatica Corporation (NASDAQ:INFA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 11.85%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Informatica Corporation Earnings Cheat Sheet

Results: Net income decreased -26.63% to $31.1 million (41 cents per diluted share) in the quarter versus a net gain of $42.39 million in the year-earlier quarter.

Revenue: Rose 3.33% to $234.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Informatica Corporation reported adjusted net income of 41 cents per share. By that measure, the company beat the mean analyst estimate of $0.37. It beat the average revenue estimate of $217.51 million.

Quoting Management: “Our fourth quarter 2012 results demonstrate our progress to regain our operational discipline,” said Sohaib Abbasi, chairman and chief executive officer, Informatica…

…Our conviction in our long-term opportunity is firmer than ever for three reasons: first, our increasing addressable market; second, promising new opportunities driven by market and technology trends of big data and cloud computing; and third, our own measures to more effectively scale our business.”

Key Stats:

Revenue increased 23.32% from $190.32 million in the previous quarter. Net income increased 100.65% from $15.5 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.32 to a profit $0.31. For the current year, the average estimate is a profit of $1.28, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials.)