SolarWinds Earnings: Blows Past Estimates

SolarWinds, Inc. (NYSE:SWI) 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 0.70%.

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SolarWinds, Inc. Earnings Cheat Sheet

Results: Net income increased 141.87% to $39.4 million (36 cents per diluted share) in the quarter versus a net gain of $16.29 million in the year-earlier quarter.

Revenue: Rose 32.17% to $73.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SolarWinds, Inc. reported adjusted net income of 36 cents per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $70.72 million.

Quoting Management: “Once again, the SolarWinds team delivered an impressive performance in 2012, resulting in full year revenue growth of 36% and a solid acceleration over our strong revenue growth last year. We believe that the team’s hard work and focus the past year to extend our product portfolio in meaningful ways, engage the IT community through compelling content and targeted marketing efforts, and establish ourselves as a significant player in the broader IT management market are reflected in this quarter’s and full year 2012 results,” said Kevin Thompson, SolarWinds’ President and Chief Executive Officer…

…2012 marked a year of significant progress for our company and brand. We believe that the investments that we made to raise systems administrators’ awareness of SolarWinds’ brand and products paid off with solid growth for many of our systems management products. Strong demand for our network configuration products, in particular SolarWinds IP Address Manager, helped to support our continued growth in network management and helped us to reinforce our leadership in that market. Once again, we believe that the strong growth across all of our geographies demonstrates that our unique approach to solving IT professionals’ critical, real-world problems continues to be a compelling alternative to our competitors,” added Thompson.

Key Stats:

Revenue increased 2.48% from $71.72 million in the previous quarter. Net income increased 75.19% from $22.49 million 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 profit of $0.34 to a profit $0.35. For the current year, the average estimate is a profit of $1.33, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)