Tibco Software Inc. jumped more than 10 percent as investors took yesterday’s positive earnings report and forecast as a sign that the company isn’t suffering badly from financial ills in Europe.
Tibco rose 12 percent to $29.92 at the New York close, the biggest gain since September 2010, according to data compiled by Bloomberg. The Palo Alto, California-based company reported yesterday that second-quarter sales rose 14 percent, more than analysts expected, and predicted sales for the quarter ending in August that were within the range of analyst estimates.
“They had great guidance on the call -- that’s what is driving the stock,” Brent Thill, an analyst at UBS in San Francisco, said in an e-mail. Sales in the Europe, Middle East and Africa region rose 4 percent, easing investor concerns that the debt crisis there would hinder technology spending. “Everyone was worried about Europe falling apart, and that didn’t happen,” said Thill, who has a buy rating on the shares.
Brad Zelnick, an analyst at Macquarie Capital USA Inc. in New York, said in an interview that institutional investors are returning to Tibco’s stock because the report was “good enough” to ease worries about business in Europe, which accounts for more than a third of sales, and banks, which make up more than a fifth. Tibco sells software that knits together companies’ various data center applications.
Tibco’s head of U.S. sales, Robin Gilthorpe, departed this week amid a reorganization at the maker of products for running corporate data centers, according to people with knowledge of the matter. During a conference call with analysts yesterday, Chief Executive Officer Vivek Ranadive said he’s “not satisfied” with Tibco’s performance in the Americas, and the software maker is changing leadership there. He didn’t identify Gilthorpe.
“We haven’t executed well in the United States,” Ranadive said. “We’re leaving money on the table right now, and I want to go pick it up.”