Sourcefire Earnings: Here’s Why Investors are Excited Now

Sourcefire, Inc. (NASDAQ:FIRE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 8.88%.

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Sourcefire, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.11 in the quarter as EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 21.38% to $56.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sourcefire, Inc. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.12. It missed the average revenue estimate of $57.38 million.

Quoting Management: “Our threat-centric approach to cybersecurity that allows defenders to address the full attack continuum is in high demand, and we believe we are extremely well positioned to capitalize on the growth opportunity in front of us. Despite weakness in federal government spending, our total revenue increased 21% driven by ongoing strong performance from our International and U.S. Commercial businesses,” said John Becker, CEO of Sourcefire.

Key Stats (on next page)…

Revenue decreased 16.57% from $67.36 million in the previous quarter. EPS decreased 62.07% from $0.29 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 $0.21 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $1.00 to a profit of $0.99 over the last ninety days.

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

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