Why Shares of Carbonite Inc. Are Popping 17% Wednesday

MarketsMotley Fool

What happened

Shares of Carbonite Inc. (NASDAQ: CARB), a provider of data protection solutions including cloud and disaster recovery as a service, are 17% higher as of 11:55 a.m. EST after the company announced fourth-quarter results and an acquisition.

Continue Reading Below

So what

Starting with Carbonite's fourth-quarter results, the company posted a 15% revenue gain to $61.7 million, which slightly missed analysts surveyed by Zacks calling for $63.7 million. On the bottom line, Carbonite reported a net loss of $1.6 million. When adjusted for special items, earnings came to $0.30 per share, which was slightly ahead of estimates calling for $0.29 per share.

According to president and CEO Mohamad Ali in a press release:

Now what

Also of major interest to investors was Carbonite entering a definitive agreement to acquire Mozy, Inc. from a subsidiary of Dell Technologies. The agreed purchase price for Mozy is $145.8 million in cash and the deal will expand Carbonite's customer base and give Mozy's customers a way to scale up with more data protection services. If the companies can generate cost synergies and cross-sell products and services, it should be a good move and definitely one of the reasons shares of Carbonite are higher Wednesday.

10 stocks we like better than CarboniteWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Carbonite wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 5, 2018

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Continue Reading Below