Earnings Preview: Tibco Software Inc.

| About: TIBCO Software, (TIBX)

Company Profile

Tibco Software Inc. provides middleware and infrastructure software worldwide. It offers products in the areas of service-oriented architecture (NYSE:SOA) and core infrastructure; business optimization; and process automation and collaboration.

Tibco (NASDAQ:TIBX) is scheduled to report its second quarter earnings results on June 28, 2012, after the market close.

Technical Overview

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Tibco has a market cap of $4.51 billion and it is currently trading around $27.09 with a 52 week range of $18.43 to $34.67. The stock has risen 13.42% year to date. The following table provides the key financial ratios for Tibco:

Key Ratio Value
Current Ratio 1.72
PEG 2.56
P/E 40.24
Forward P/E 19.83
Profit Margin 12.20%
Return On Assets (ROA) 9.05%
Return On Equity (ROE) 13.88%

Recent News

  • On June 20, 2012, The Telly Awards has named Tibco as an award recipient in the 33rd Annual Telly Awards for its documentary titled "Never Give Up" in the non-broadcast productions category.
  • On June 18, 2012, Tibco announced that Forrester Research, Inc. has recognized the TibcoSpotfire® Analytics Platform as a leader in self-service Business Intelligence (BI) platforms with the highest "Current Offering" score, according to The Forrester Wave™.
  • On June 07, 2012, Tibco announced that Sydney Carey, executive vice president and chief financial officer, has been chosen as the Bay Area CFO of the Year.
  • On June 06, 2012, Tibco announced it has received the HP AllianceONE Partner of the Year Award for Cloud Computing.
  • On May 22, 2012, Tibco announced that Tibco has been named a leader in the May 2012 Forrester Research, Inc., report Forrester Wave™.
  • On May 08, 2012, Tibco announced that LogLogic, a recently acquired company of Tibco, was named by Network Products Guide as a finalist in seven categories, for its Seventh Annual 2012 Hot Companies and Best Products Awards.
  • On May 04, 2012, Tibco congratulated ThyssenKrupp Steel USA for achieving international certification for its state-of-the-art quality management operations powered by innovative technologies such as Tibco Nimbus Control®.
  • On May 01, 2012, Tibco announced that PT XL AxiataTbk (XL), Indonesia's second largest mobile carrier, has chosen TIBCO software to power its new mobile payment solution, expanding its revenue opportunities and bridging economic barriers for the country's unbanked population.
  • On April 17, 2012, Tibco announced the pricing of an offering of $525 million aggregate principal amount of its 2.25% convertible senior notes due 2032 (the "Notes").

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $244.71 million when compared to $216.42 million for the same quarter last year. Earnings per share for the second quarter are expected to be 23 cents a share, up from a 21 cents a share in the year-ago period.

The average price target from analyst for Tibco is $35.90 with average rating is OVERWEIGHT

Out of the last 4 quarters, Tibco has exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Tibco:


International Business Machines Corp (NYSE:IBM), Oracle Corp.(NASDAQ:ORCL), Microsoft Corp (NASDAQ:MSFT) and Progress Software Corp (NASDAQ:PRGS) are considered as major competitors for Tibco and the table below provides the key metrics for these companies:

Price $27.05 $197.75 $28.46 $30.77 $19.90
52 Week Price 8.7% 20.59% -10.72% 26.40% -15.09%
Market Capitalization $4.4B $228.7B $134.9B $250.7B $1.2B
Earnings per Share 0.68 13.42 1.96 2.74 0.69
Total Revenue $960.6M $107.0B $37.1B $73.0B $523.8M
Employees (Full-Time) 2965 433362 N/A 90000 1744

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclosure: I am long IBM.