SAN FRANCISCO (AP) — Synchronoss Technologies Inc. shares soared Tuesday after the provider of subscriber activation and other services for wireless companies reported second-quarter results earnings that squeaked past analyst views and it raised its full-year outlook.
THE SPARK: Late Monday, Synchronoss said it earned $3.2 million, or 6 cents per share, compared with $3 million, or 9 cents per share, in the year-ago quarter. The company’s per-share income was calculated with a larger number of shares in the most recent quarter.
The Bridgewater, N.J.-based company earned 21 cents per share, excluding one-time items, which is a penny more than what analysts polled by FactSet expected.
Revenue rose 47 percent to $54.8 million. Analysts expected $54.6 million in revenue. The company said its business with AT&T grew during the quarter, and it continued product deployments with Vodafone and Verizon.
During a conference call with analysts, Synchronoss predicted third-quarter earnings of 21 or 22 cents per share, excluding one-time items. And the company increased its outlook for the full year, saying it now expects adjusted net income of 82 to 85 cents per share on $225 million to $229 million in revenue.
At the time of its report, analysts were hoping for adjusted net income of 21 cents per share for the third quarter and adjusted net income of 84 cents per share on $222.8 million in revenue for the full year.
ANALYSIS: In a Tuesday client note, Raymond James analyst Shyam Patil called the company’s quarter “solid.” He reiterated his “Outperform” rating for the stock and $40 price target, saying it is one of the “top open-ended growth stories with several near- to intermediate-term growth catalysts.”
SHARE ACTION: Synchronoss shares rose $6.30, or 22 percent, to finish trading at $35.07.