LogMeIn (NASDAQ:LOGM) posted another strong quarter last week, sending shares up 5% in a day. Its Q2 earnings beat consensus by 20%, marking the fourth straight quarter of earnings beats. EPS came in at $0.29 (beating $0.24 consensus) and revenue was $55 million (beating $52.5 million consensus). Driving the Q2 earnings beat was its join.me products (which saw 100% y/y growth for the quarter) and demand for its Xively product (which is tackling the Internet of Things). The company guided Q3 EPS to $0.27 to $0.28, which was above previous consensus of $0.26.
We first profiled LogMeIn back in November, since then shares are up 33%. Now trading at $42 a share, the stock has inched its way above our $37 fair value estimate. It still has no debt and 20% of its balance sheet is covered by cash on the balance sheet. The average analyst price target is $55 (still 27% higher than current levels).
As we noted in September:
"So, what Xively is doing is expanding LogMeIn's total addressable market. For 2012, LogMeIn was tackling a $5 billion market that covered access/collaboration and customer care, and by 2015, it expects to have a total addressable market of $13 billion, thanks in large part to its attack on the Internet of Things and cloud storage markets."
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