Blackbaud Upgraded to Strong Buy - Analyst Blog
11 Mars 2013 - 7:37PM
Zacks
On Mar 9, Zacks Investment Research upgraded Blackbaud
Inc. (BLKB) to Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Blackbaud has been witnessing rising earnings estimates on the
back of strong fiscal fourth-quarter 2012 results and encouraging
full-year 2013 outlook. Moreover, this well-known software
solutions provider delivered positive earnings surprise in the last
quarter with a surprise of 58.8%. The long-term expected earnings
growth rate for this stock is 15.0%
Blackbaudreported fiscal fourth-quarter (ended Dec 31, 2012)
results on Feb 13, 2013. Non-GAAP earnings per share came in at 27
cents, surpassing the Zacks Consensus Estimate and year-ago
earnings of 17 cents by 58.8%.
Each of the company’s business units performed well during the
quarter and the recent acquisition of Convio was accretive to the
earnings with its Luminate product line. In addition, the company
also gained through its go-to-market strategies.
Earnings growth, both year-over-year and sequentially, were
primarily driven by disciplined cost management and significant
cost synergies from the Covio acquisition.
Based on its progress, the company provided an encouraging
guidance for full year 2013. For the full year 2013, Blackbaud
expects total non-GAAP revenue in the range of $495 million to $505
million.
Revenue guidance takes into account a negative impact of
approximately $6 million related to incremental progress
rationalizing and integrating the product suite and due to changing
contractual terms with the company’s product partner in the
ticketing area, which requires it to move from gross to net revenue
recognition for sales in the related solution. However, this
adjustment will have no impact on the profitability.
Non-GAAP operating margin is expected in the range of 19% to
19.5%, reflecting approximately 250 basis points growth from the
prior year.
The Zacks Consensus Estimate for fiscal 2013 increased 8.6% to
88 cents per share as most of the estimates were revised higher
over the last 30 days.
Other Stocks to Consider
The following software solution providers with favorable Zacks
Rank are also performing well and are worth considering.
- Symantec Corp. (SYMC) carries a Zacks #1 Rank
(Strong Buy)
- Synopsis Inc. (SNPS) carries a Zacks #1 Rank
(Strong
Buy)
- Pervasive Software Inc. (PVSW) carries a Zacks
#1 Rank (Strong Buy)
BLACKBAUD INC (BLKB): Free Stock Analysis Report
PERVASIVE SOFTW (PVSW): Free Stock Analysis Report
SYNOPSYS INC (SNPS): Free Stock Analysis Report
SYMANTEC CORP (SYMC): Free Stock Analysis Report
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Zacks Investment Research
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