Pervasive Beats Estimates, Shares Are Still Poised to Triple

| About: Pervasive Software (PVSW)

On Wednesday evening, Pervasive Software (NASDAQ:PVSW) announced that June-quarter sales will come in at $13.5 - 13.7 million. This is a big 16% upside surprise over its previous guidance range, which had already been increased on April 20th.

As we first discussed in the SeekingAlpha article, “Big Data M&A Heats Up: Pervasive Software Could Be Acquired Next,” Big Data is getting red hot and PVSW is the cheapest pure play in the space. Shares of Informatica (NASDAQ:INFA) have already risen six-fold from its 2008 lows and have continued to be on fire this year. Shares of PVSW appear ready to follow the same path and could triple to $20. This would also represent a six-fold rise from its 2008 lows. We outlined the details of why this move is coming in the article, “Pervasive Software Shares Are Poised to Triple.”

In the meantime, the story continues to improve at an accelerating rate. Management has now delivered 42 consecutive quarters of profitability and continues to buy back shares as part of its $10 million buyback program (it acquired 255,000 shares during the June quarter). All of this increases the odds that PVSW gets acquired by INFA, Microstrategy (NASDAQ:MSTR) or Oracle (NASDAQ:ORCL), among others. Indeed, investors have much to celebrate and can look forward to an upbeat call on July 26th. We expect to hear more reasons why PVSW shares are poised to triple.

For more information on stocks that we believe are Poised to Triple, see the SeekingAlpha article, “Revisiting Stocks That Are Poised to Triple.”

Disclosure: I am long PVSW.