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. Shares are up 4.62%.
Rally Software Development Corp. Earnings Cheat Sheet
Revenue: Was the same at $16 million as the year-earlier quarter.
Actual vs. Wall St. Expectations: Rally Software Development Corp. reported adjusted EPS loss of $0.86 per share. By that measure, the company beat the mean analyst estimate of $-1.06. It beat the average revenue estimate of $14.81 million.
Quoting Management: “We are delighted to report record results for our first quarter as a public company,” commented Tim Miller, Chairman and CEO of Rally. “As our financials demonstrate, we experienced good momentum across the business and had notable new customer wins in many key industries and geographies. These new customers include a major healthcare provider in the U.S., banks in North America and Europe, and a large retailer in the UK and Europe. In addition, we were successful at expanding engagements with existing customers, including a major Internet search provider that increased its seat count by 200% in the quarter. The number of new companies developing their businesses based on Agile and Rally from inception is not only driving our revenue in the near term, but makes us highly optimistic about our continued success well into the future.”
Key Stats (on next page)…
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 $0 to a loss $0.22. For the current year, the average estimate is $0, 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. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)