Why Pareteum Stock Soared Wednesday

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What happened

Shares Pareteum (NASDAQ: TEUM) surged on Wednesday. The stock rose as much as 31.7%. As of 2:36 p.m. EDT, shares were up 23.9%.

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The stock's gain was driven by the cloud communications platform company's strong fourth-quarter results, which were announced after market close on Tuesday.

So what

Pareteum's fourth-quarter revenue soared 256% year over year to $14.3 million. Revenue was helped by the company's acquisition of Artilium -- a mobile virtual network and Internet of Things enabler -- in late September.

Pareteum's non-GAAP earnings per share for the period were $0.02, even with its non-GAAP earnings per share in the year-ago quarter.

Analysts, on average, were expecting revenue of around $13 million and non-GAAP EPS of $0.01.

Now what

Management is optimistic about 2019, with the company's principal executive officer, Hal Turner, noting:

Management guided for full-year 2019 revenue to be between $105 and $116 million, representing 225% to 260% year-over-year growth.

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Daniel Sparks 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.