Why AVG Technologies Shares Popped
Feb 22nd 2013 4:00PM
Updated Feb 22nd 2013 4:35PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of AVG Technologies have popped today by as much as 14% after the company reported earnings.
So what: Revenue in the fourth quarter totaled $95.2 million, which was shy of the $96.4 million consensus estimate. The good news is that the non-GAAP earnings per share of $0.32 was well ahead of the $0.26 per share that the Street was expecting, showing that the company's efforts to optimize costs are paying off.
Now what: AVG also offered up rather rosy guidance. Full-year sales are expected to be $408 million to $420 million, which crushes the consensus estimate of $403 million. AVG sees adjusted earnings per share of $1.68 to $1.88 for 2013, also well ahead of the $1.44 per share in adjusted profit that analysts were modeling for. At the end of the year, AVG boasted a user base of 146 million.
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The article Why AVG Technologies Shares Popped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, 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.
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