Solarwinds Earnings Preview: Can This Streak Continue?

Solarwinds (NYSE:SWI) will report earnings after markets close on Tuesday, April 30th. Solarwinds, Inc. provides enterprise-class network management software. The Company’s products includes individual software tools, products, and help for network management.

Here is your Cheat Sheet to Solarwinds Earnings:

Earnings Expectations: Analysts expect earnings of $0.38 per share on revenues of $75.61 million. Currently, the company’s P/E ratio stands at 45.33.

Analyst Trends:

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 $0.37 to a profit $0.39. For the current year, the average estimate is a profit of $1.62, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Solarwinds has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 93.14 116.45 152.39 198.36 268.96
Diluted EPS ($) 0.35 0.52 0.61 0.84 1.07

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 55.61 59.67 64.04 71.72 73.53
Diluted EPS ($) 0.2177 0.23 0.26 0.29 0.2914

Past Performance:
Solarwinds has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)