Wednesday, May 22, 2:19 PM
SolarWinds' (SWI -13.9%) is downgraded to Sector Perform at Pacific Crest after yesterday's $120M purchase of N-able Technologies. "The customer base, integration of the acquisition and deal size is incongruous with prior acquisitions," the firm writes, adding SWI is spending half of its cash on an "incremental opportunity that pales in comparison to its existing" market.
Comment![Tech, M&A, On the Move]
Tuesday, May 21, 6:38 PM
SolarWinds (SWI) attempts to move downmarket and obtain a stronger cloud presence by striking a deal to acquire private N-able for $120M in cash. Whereas SolarWinds' IT management offerings are more focused on enterprises (it has been gaining share here against the likes of CA, BMC, H-P, and IBM), N-able sells cloud-based IT management software to service providers, who in turn use them to offer IT management services to SMBs. (PR)
Tuesday, April 30, 5:46 PM
Tech guidance roundup: 1) SolarWinds (SWI - earnings) expects Q2 revenue of $77.8M-$78.8M and EPS of $0.37-$0.38, below a consensus of $80.7M and $0.39. 2013 guidance is for revenue of $326.5M-$334M and EPS of $1.59-$1.65 vs. a consensus of $336.1M and $1.62. 2) Cavium (CAVM - earnings) expects Q2 revenue of ~$74M and EPS of $0.21-$0.23 vs. a consensus of $74.1M and $0.22. 3) Sonus (SONS - earnings) expects Q2 revenue of $66M-$68M and EPS of -$0.01 to $0.00 vs. a consensus of $64.9M and $0.00. 2013 guidance is for revenue of $267M-$271M and EPS of $0.00-$0.01 vs. a consensus of $268.7M and $0.00. SWI -8.4% AH. CAVM +4.1%. SONS +4.8%. (SolarWinds PR) (Cavium PR) (Sonus PR)
Comment![Tech, Earnings, On the Move]
Wednesday, April 3, 10:49 AM
Morgan Stanley upgrades SolarWinds (SWI +1.5%) to Equal Weight, arguing the firm's accelerating license volume growth and stabilizing sales productivity justify its current valuation - SolarWinds currently trades at 36x 2013E EPS. Shares aren't too far removed from their 52-week high of $61.52, as investors bet on further systems management software share gains relative to IBM, H-P, CA, and BMC.
Comment![Tech, On the Move]
Tuesday, February 5, 2:21 PM
SolarWinds (SWI -5.3%) is lower after posting its Q4 report. Results beat estimates and Q1 guidance for revenue of $74.9M-$75.7M and EPS of $0.37 is above a consensus of $74.6M and $0.35. Also, 2013 guidance for revenue of $330M-$338M and EPS of $1.57-$1.62 is largely above a consensus of $331.5M and $1.55. But with shares trading at 36x 2013E EPS going in, expectations were high. Management noted on the earnings call EMEA and Asia-Pac new license sales respectively rose 47% and 39% Y/Y, leading international sales to make up 27% of revenue (vs. 22% in Q3).
Comment![Tech, On the Move, Earnings]
Tuesday, November 13, 2012, 4:42 PM
SolarWinds (SWI +1.4%) closed with a modest gain after using its 2012 analyst day to guide for 2013 revenue of $328M-$335M, largely above a $328.3M consensus. The systems management software vendor is re-affirming 2012 EPS guidance of $1.31-$1.32 (slightly below a $1.33 consensus). Shares rallied strongly earlier this year, but have been range-bound in recent months. (slides - PDF)
Friday, October 26, 2012, 9:23 AMCA -6.4% following its FQ2 report. Not only did revenue miss estimates, the company guided for FY13 (ends March '13) revenue of $4.58B-$4.67B and EPS of $2.36-$2.44, below a consensus of $4.76B and $2.48. FQ2 EPS was propped up by $250M in stock buybacks. Bookings fell 13% Y/Y, and backlog by 7% (North American bookings -25%). CA has faced tough competition from SolarWinds (SWI), ServiceNow (NOW), and IBM's Tivoli unit. (transcript)
Comment![Tech, Earnings, On the Move]
Thursday, October 25, 2012, 11:56 AM
Up strongly premarket following its Q3 beat, SolarWinds (SWI -8.9%) has dramatically reversed course. Q4 guidance - revenue of $69.3M-$70.8M and EPS of $0.31-$0.33 vs. a consensus of $70.1M and $0.31 - could be disappointing some investors, given the systems management software firm, which has been taking share, closed yesterday at 35x estimated 2013 EPS. Q3 new license sales rose 39% Y/Y, exceeding revenue growth of 33%, and deferred revenue rose 13% Q/Q to $98.1M. (PR)
1 Comment[Tech, Earnings, On the Move]