Rally Software Development Earnings: Everything You Must Know Now

Rally Software Development Corp. (NYSE:RALY) had a loss 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.

Rally Software Development Corp. Earnings Cheat Sheet

Revenue: Rose 75.84% to $19.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rally Software Development Corp. reported adjusted EPS loss of $0.04 per share. By that measure, the company beat the mean analyst estimate of $-0.19. It beat the average revenue estimate of $17.97 million.

Quoting Management: “We are delighted to report record revenues for our second quarter as a public company,” commented Tim Miller, Chairman and CEO of Rally. “As our performance demonstrates, we experienced good momentum across the business and had notable new customer wins in many key industries and geographies. These new customers include a leading global automaker, the financial services unit of a diversified technology and financial services company, a consumer credit reporting agency, a broadcast and satellite service provider, and a large online retailer. Our ability to exceed expectations across key operating metrics during the second quarter highlights Rally’s continued strong competitive win rates, healthy renewals, and continued international growth and expansion into existing accounts, underscoring our confidence that we have built a high-growth, highly defensible business.”

Key Stats (on next page)…

Revenue increased 23.36% from $16.05 million in the previous quarter. EPS increased to $-0.04 in the quarter versus EPS of $-0.86 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.22 to a loss $0.21. For the current year, the average estimate has moved up from a loss of $1.09 to a loss of $1.01 over the last ninety days.

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. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)