BroadSoft Inc (O:BSFT) is having an incredible start to trading today, and for good reason. Early this morning before the opening bell, the company reported its earnings for the fourth quarter, as well as guidance for the first quarter of FY16. All in all, the company reported relatively positive numbers.
Today, we'll look at the report, how the market is reacting to the news, and what we can expect to see from BSFT moving forward. So, let's get right to it...
BSFT Reports Solid Earnings and Guidance
As mentioned above, BSFT reported earnings this morning absolutely blowing away expectations. Here's what we saw from the Q4 report...
- Earnings Per Share – In terms of earnings per share, BroadSoft did incredibly well. For the fourth quarter, analysts expected that the company would produce earnings in the amount of $0.67 per share. However, the company absolutely blew away these expectations by producing earnings in the amount of $1.04 per share.
- Top-Line Revenue – In terms of top-line revenue, we also saw incredibly strong numbers. For the fourth quarter, analysts expected BSFT to produce revenue in the amount of $81.61 million. However, the company actually generated revenue for the quarter in the amount of $89.6 million.
- Guidance – As if solid earnings and revenue were not enough, BSFT also released guidance for the first quarter of and full year 2016. In the first quarter, analysts expect that BroadSoft will generated earnings in the amount of $0.24 per share. However, the company released guidance stating that it expects for earnings to range between $0.20 and $0.32 per share in the first quarter. BSFT is also ahead on revenue guidance, expecting to generate between $70 and $74 million in the quarter, compared to the $68.7 million analysts are expecting. Finally, full year guidance is also relatively positive. Throughout the year, the company expects to generate earnings in the range between $1.90 and $2.10 per share. This is on the higher side of analyst estimates at $1.93 per share. The company is also expecting to generate revenue in the range between $332 and $340 million, beating the analyst expectations of $325.1 million.
How The Market Reacted To The News
As investors, we know that any time we see positive news with regard to a publicly traded company, we can expect to see gains in the market as a result. Not to mention, there are few factors that can cause positive movement quite like positive earnings. With that said, BroadSoft is doing incredibly well in the market early this morning as a result of investor excitement over earnings. Currently (9:39), BSFT is trading at $36.76 per share after a gain of $5.29 per share or 16.81% thus far today.
What We Can Expect From BSFT Moving Forward
Moving forward, I have a relatively positive opinion of what we can expect to see from BSFT. In the short term, the stock is likely to continue edging up on investor excitement. However, this isn't the first time the company has produced solid earnings. In fact, in three out of the past four quarters, the company has blown away earnings expectations. With a strong team, a strong line of products, and a great plan for growth, BSFT is likely to climb from here.