Incontact Up Sharply On Q2 Beat, Upgrades From 2 Analysts
Incontact (NASDAQ: SAAS) shares opened sharply higher after the company beat second-quarter earnings expectations Thursday and two brokers upgraded the shares.
The company, which provides customer call-center technology, swung to a net profit of $4.5 million, or $0.07 per share, from a year-earlier loss of $1.8 million or $0.03 per share. Revenue grew 32 percent to $41.1 million, from $31.1 million.
Recent income included an acquisition-related tax adjustment gain of $10.2 million.
Wall Street expected a loss of $0.09 per share on revenue of $43 million. Wall Street estimates typically exclude one-time items.
Benchmark upgraded InContact Thursday from Hold to Buy Thursday, while Oppenheimer upgraded the company from Market Perform to Outperform.
InContact Chief Executive Paul Jarman said the estimated value of total contracts grew 32 percent in the second quarter, when the company closed 100 contracts, including 52 with new customers and 48 expansion deals.
Total revenue included a 50 percent increase in software revenue to $24.2 million from $16.2 million, as well as a 37 percent gain in network connectivity revenue to $38.5 million, from $28.1 million a year ago.
Second-quarter gross margin was flat at 49 percent compared with a year earlier, although adjusted gross margin rose from 56 percent to 58 percent last year,
Incontact traded recently at $8.98, up 16.9 percent.
Latest Ratings for SAAS
|May 2016||Summit Research Partners||Downgrades||Buy||Hold|
|May 2016||Lake Street||Downgrades||Buy||Hold|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.