Solera Holdings Earnings: Here’s Why the Stock is Up Now

Solera Holdings Inc. (NYSE:SLH) 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 0.31%.

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Solera Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.43% to $0.71 in the quarter versus EPS of $0.70 in the year-earlier quarter.

Revenue: Rose 8.38% to $214.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Solera Holdings Inc. reported adjusted EPS income of $0.71 per share. By that measure, the company beat the mean analyst estimate of $0.67. It beat the average revenue estimate of $213.24 million.

Quoting Management: “I am pleased to report that for the third consecutive quarter, we have exceeded consensus estimates for revenue, Adjusted EBITDA and cash EPS, and we have raised guidance,” said Tony Aquila, Solera’s founder, Chairman and Chief Executive Officer. “Globally, we have a positive outlook for the fourth quarter and believe that we are building a strong foundation across our Advanced, Evolving and Emerging markets. We are excited about executing phase one of Mission 2020 – $2 billion in revenue and a 40% Adjusted EBITDA margins by fiscal year 2020.”

Key Stats (on next page)…

Revenue increased 2.57% from $209.23 million in the previous quarter. EPS increased 2.9% from $0.69 in the previous quarter.

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 a profit of $0.66 to a profit $0.65. For the current year, the average estimate has moved up from a profit of $2.6 to a profit of $2.66 over the last ninety days.

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