NetSuite Rises on Strong Forecast
Business-software maker NetSuite Inc. (NYSE:N) gained Friday morning after the company announced an outlook that topped expectations stronger-than-expected outlook. NetSuite shares rose more than 7 percent to $47.65, with an increase of of almost 18 percent since Jan. 1, said the report.
On Thursday, the San Mateo, Calif.-based company posted an adjusted profit of 5 cents a share, on revenue of $64.1 million, beating consensus Wall Street estimates of 4 cents a share, on revenue of $63 million. The company’s forecast was also stronger than anticipated.
According to JMP Securities analyst Patrick Walravens, NetSuite is advancing due to growing demand for business software applications sold as a Web-based service, MarketWatch said.
Using the so-called software-as-a-service model, applications for tasks such as keeping track of inventory and managing payroll is available to businesses through the Web. Clients are charged based on the number of users. Walravens said the demand for Web-based business applications has been especially strong in the mid-market where he believes “there are very few vendors that can meet this need.”
Here’s how shares are reacting to the news:
NetSuite Inc. (NYSE:N): N shares recently traded at $46.79, up $2.43, or 5.48%. They have traded in a 52-week range of $25.32 to $48.03. Volume today was 783,525 shares versus a 3-month average volume of 415,368 shares. The company’s trailing earnings are $-0.47 per share.