Earnings Preview: Informatica

| About: Informatica Corporation (INFA)

Informatica (NASDAQ:INFA) is expected to report Q4 earnings after the close Thursday, January 29, with a conference call scheduled for 5:00 pm ET.


The consensus estimate is 23c for EPS and $127.4M for revenue, according to First Call.

Analyst Views

Wedbush is looking for Informatica to post in-line Q4 results and provide conservative but in-line 2009 guidance as consensus estimates have come down sharply after management provided very conservative 2009 guidance last quarter. Wedbush's current forecast for Informatica’s Q4 revenue and EPS is $127.0M and 23c, in-line with consensus estimates and at the mid point of management’s guidance range of $124.7M-$129.7M and 22c-24c. Wedbush is expecting license revenue of $58.0M, slightly above the consensus estimate of $57.3M. Wedbush advised investors to buy Informatica shares as it believes the company will continue to outperform relative to its perpetual license software peers despite a weakening macro-environment. Informatica's products can and have been marketed to reduce enterprise costs, as well as to foster easier consolidation and integration among the shrinking number of financial services players. Wedbush also believes Informatica could be a good potential takeover target given its consistent revenue and earnings growth, dominant market position, and significant recurring maintenance revenue stream. Wedbush rates Informatica a Buy, with a 12-month price target of $16.