Why Inovalon Holdings, Inc. Stock Jumped

What happened

Shares of cloud-based analytics company Inovalon Holdings (NASDAQ: INOV) increased as much as 20% on Thursday following the company's third-quarter earnings release. The gain, however, has pulled back slightly. Shares are up about 12% at the time of this writing.

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So what

Inovalon reported third-quarter revenue and adjusted earnings per share (EPS) of $105 million and $0.10, respectively. The stock's gain on Thursday is likely because these results landed ahead of analyst expectations. On average, analysts were expecting revenue and adjusted EPS of $103 million and $0.06, respectively, according to data compiled by Thomson Reuters.

CEO Keith Dunleavy seemed pleased with the results. He said:

Now what

Looking ahead, Inovalon importantly reaffirmed the company's full-year guidance, which calls for revenue in the range of $470 million to $490 million and adjusted EPS of $0.28 to $0.35.

It's also worth noting that, going forward, the company will have a new chief financial and operating officer. Inovalon promoted Chris Greiner to the role and announced that Tom Kloster has stepped down from the CFO position "to pursue other opportunities."

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Daniel Sparks has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.