Cognos Stock Surges After Quarterly Results
Investors snapped up Cognos (COGN) shares on Sept. 22, after chief executive officer Rob Ashe announced quarterly financial results.
The Ottawa, Canada-based software services provider said late Sept. 21 that its net income during the three months ended Aug. 31 amounted to $23.8 million, or 26 cents per diluted share, compared with $24.9 million, or 27 cents per diluted share for the same period last year.
But the company also noted that it has added 23 sales representatives and had continued strong large deal performance during the quarter. "We have increased our sales capacity and taken action to streamline our organization," Ashe said in a press release. "I believe we are very well positioned for the second half of the year and beyond."
For the quarter ending Nov. 30, Cognos expects diluted earnings per share in the range of 10 cents to 14 cents. In the year ended Feb. 28 2007, it forecast EPS between $1.08 and $1.15.
The stock price surged more than 9% to $34.82 on the NASDAQ.
UBS Financial's anayst Robert Dennison hiked his EPS estimate of the company's fiscal year 2007 to $1.63 from $1.46. His fiscal year 2008 EPS estimate rose to $1.98 from $1.74. He noted the company's $200 million stock buyback and that it continues getting large deals.