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What: Shares of the telecom software technologist BroadSoft were up 17.5% at 10:55 a.m. EST Monday after its quarterly results and outlook topped Wall Street expectations.
So what: Broadsoft shares have perked up in recent weeks on optimism heading into the quarter, and Monday's Q4 results -- adjusted EPS of $1.04 smashed the consensus by $0.37 on revenue growth of $36.2% -- coupled with upbeat guidance only reinforce that positive sentiment. In fact, billings for Q4 increased 9.5% year over year while operating margin increased to 23% from 17% in the year-ago period, giving analysts plenty of good vibes over the company's competitive position going forward.
Now what: Management now sees full-year adjusted EPS of $1.90-$2.10 on revenue of $332 million-$340 million, versus the consensus of $1.93 and $325.1 million, respectively. "In addition to delivering robust financial results, we delivered on our strategic goals," said President and CEO Michael Tessler. "We introduced our vision of the 'future of work' and next-generation business communications with Project Tempo. We expanded BroadCloud internationally, including into Japan, and achieved important milestones on several of the large network transformation deals we previously won. I look forward to continuing this momentum in 2016." Of course, with the shares now up about 40% from their 52-week highs, I'd wait for some of the excitement to fade before buying into that bullishness.
The article Why BroadSoft Inc Shares Soared originally appeared on Fool.com.
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