JDA Jumps Most Since 1996 as Sales Beat Estimates
JDA Software Group Inc. (JDAS), the maker of business-management programs for retailers, jumped the most in Nasdaq trading since its initial public offering after second-quarter revenue beat analysts’ estimates.
Sales climbed 8.4 percent to $99.5 million, topping the $86.3 million average estimate of five analysts surveyed by Bloomberg. Profit excluding some items increased to $16.7 million, or 47 cents a share, from $10.3 million, or 29 cents, a year earlier, the company said in a statement issued after the close of U.S. trading yesterday.
JDA said it closed $14.4 million in software agreements in the Americas region in the quarter, compared with $8.9 million a year earlier. Customers included women’s clothing retailer Chico’s FAS Inc. and Carter’s Inc., a seller of clothing for children and babies. Sales also climbed in the company’s Europe, Middle East and Africa (EMEA) region as well as the Asia Pacific market, the company said.
“I look at 2009 this way; the first quarter was softer, the second quarter was strong,” Chief Executive Officer Hamish Brewer said in a conference call with investors. “I expect the third quarter to be seasonally softer again and then the fourth quarter to be strong.”
JDA reported worldwide software license sales of $27.6 million, compared with $15.5 million a year earlier. The gain surprised analysts, Richard Williams, an analyst at Cross Research, said in an interview today.
“The licenses came in almost double what consensus was looking for,” Williams said. He raised his price target for the stock to $20 from $17 and rates the shares “buy,” according to a note to investors today. Williams doesn’t own JDA shares.
“New products seem to be resonating with customers, and retailers are willing to invest in the current environment to improve their operations,” he said.
JDA gained $5.65, or 34 percent, to $22.09 at 4 p.m. New York time in Nasdaq Stock Market composite trading, the largest gain since the company went public in March 1996. The Scottsdale, Arizona-based company’s shares have climbed 68 percent this year.
The company also said it hired Peter Hathaway as chief financial officer. He replaced Kristen Magnuson, who resigned after 11 years, the company said in a statement April 8. Hathaway was previously CFO of Allied Waste Industries Inc., JDA said yesterday.
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