TIBCO Software Inc. Earnings Cheat Sheet: Increased Profit Helps Beat the Street

TIBCO Software Inc. (NASDAQ:TIBX) reported net income above Wall Street’s expectations for the fourth quarter. TIBCO Software is a provider of infrastructure software. It offers a range of standards-based infrastructure software solutions that help organizations achieve the benefits of real-time business.

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TIBCO Software Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for TIBCO Software Inc. rose to $51.9 million (30 cents per share) vs. $37.5 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 38.4% from the year earlier quarter.

Revenue: Rose 20% to $289.5 million from the year earlier quarter.

Quoting Management: “TIBCO delivered another strong year of accelerating revenue growth and expanded profitability in 2011,” said Vivek Ranadiv, TIBCO’s chairman and chief executive officer. “As we turn to 2012, we will focus on expanding our sales coverage, extending our event-driven platform, and continuing to broaden the range of industries we serve. Our offerings and the demands of the 21st century enterprise have never been better aligned.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22.4%, with the biggest boost coming in the second quarter when revenue rose 24.9% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 35.6% and in the second quarter, the figure rose 64.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the third quarter, by one cent in the second quarter, and by 2 cents in the first quarter.

The company’s cost of sales rose 19.9% from a year earlier. Last quarter, cost of sales was 24% of revenue, similar to a year earlier.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 15 cents per share to 14 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is 75 cents per share, a rise from 74 cents ninety days ago.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Progress Software Corp. (NASDAQ:PRGS), CA, Inc. (NASDAQ:CA), Intl. Business Machines Corp. (NYSE:IBM), Pegasystems Inc. (NASDAQ:PEGA), MicroStrategy Incorporated (NASDAQ:MSTR), SAP AG (NYSE:SAP), Microsoft Corporation (NASDAQ:MSFT), Red Hat, Inc. (NYSE:RHT), and Sybase, Inc. (SY).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)