FBR Capital Maintains a 'Market Perform' on RightNow Technologies (RNOW); Good Quarter: Strong New Customer Additions and Software Backlog
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Price: $43.00 --0%
Rating Summary:
3 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
3 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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FBR Capital maintains a 'Market Perform' on RightNow Technologies (NASDAQ: RNOW), PT $35.
FBR analyst says, "The biggest takeaways for us were (1) strong new customer additions, and (2) accelerating current software backlog growth. New customer additions reached the highest level since 2Q08, which bodes well for future growth. New customers typically initially sign up for smaller deals, and RightNow has demonstrated the ability to expand customer relationships. Current software backlog grew 27% on a TTM basis, which accelerated from 24% and 23% in the prior two quarters. We are encouraged by the acceleration of software backlog growth, as it is a good leading indicator for recurring revenue growth in the next 12 months. As such, we are inclined to believe management’s 2011 recurring revenue growth guidance of 24% is on the conservative side."
"We are raising our 2011 revenue and pro forma EPS estimates from $225 million and $0.52 to $226 million and $0.55. We are raising our 2012 revenue and pro forma EPS estimates from $263 million and $0.80 to $267 million and $0.82."
For more ratings news on RightNow Technologies click here and for the rating history of RightNow Technologies click here.
Shares of RightNow Technologies closed at $32.95 yesterday.
FBR analyst says, "The biggest takeaways for us were (1) strong new customer additions, and (2) accelerating current software backlog growth. New customer additions reached the highest level since 2Q08, which bodes well for future growth. New customers typically initially sign up for smaller deals, and RightNow has demonstrated the ability to expand customer relationships. Current software backlog grew 27% on a TTM basis, which accelerated from 24% and 23% in the prior two quarters. We are encouraged by the acceleration of software backlog growth, as it is a good leading indicator for recurring revenue growth in the next 12 months. As such, we are inclined to believe management’s 2011 recurring revenue growth guidance of 24% is on the conservative side."
"We are raising our 2011 revenue and pro forma EPS estimates from $225 million and $0.52 to $226 million and $0.55. We are raising our 2012 revenue and pro forma EPS estimates from $263 million and $0.80 to $267 million and $0.82."
For more ratings news on RightNow Technologies click here and for the rating history of RightNow Technologies click here.
Shares of RightNow Technologies closed at $32.95 yesterday.
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