Compuware Reports Better Than Expected 2Q

Compuware Corporation's CPWR model is starting to come together, according to MKM Parters, which published a research report on the company following better than expected 2Q earnings. In the report, MKM writes "CPWR reported 2QFY10 revenue and operating earnings of $226mn (+3.6% y/y) and $0.13 relative to our $221mn and $0.10 estimates, respectively. Upside was based on the growth assets as the Vantage and Gomez APM products generated revenue of $35.9mn (+30.5% q/q) vs. our $30.7mn estimate. Total product revenue of $167.6mn (+4.9% y/y) exceeded our $164.1mn estimate as growth areas further emerged in the context of the mainframe segment which was largely inline." MKM maintains its Buy rating and $10 price target. Compuware Corporation closed yesterday at $8.82.