Jefferies Comments on SolarWinds (SWI) Following Analyst Day; FY12 Outlook Modest, Likes New Initiatives
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Price: $18.49 --0%
Rating Summary:
9 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies commented on SolarWinds (NYSE: SWI) following a recent analyst day. The firm maintained a Buy rating and $33 price target on the stock.
SolarWinds issued initial fiscal 2012 (FY12) guidance including revenue growth of 23 to 27 percent, implying revenue of $241 to $249 million. The Street was expecting revenue of $238 million. SolarWinds is also targeting operating margin of 50 percent.
For FY12, there will also be a shift in priority, with more focus placed on cross-sell into its already installed based. Opportunity for SolarWinds is large, with Jefferies noting a market of about $6 billion or more. Currently, SolarWinds is in the process of building a dedicated sales team for this initiative. Jefferies further commented that, "New product enhancement remains a part of the strategy where broader platform support within the storage and virtualization products likely marks the next milestone."
Additionally, SolarWinds will turn some focus toward International growth in FY12, as its web presence has been solidifying. For this venture, SolarWinds has been recruiting more local partners, establishing a community presence, and localizing it's web presence. All this should add up to a busy local-language product release in FY12.
On the meeting, Jefferies is boosting numbers for FY12: second- through fourth-quarter EPS numbers move from 26, 29, and 30 cents to 27, 31, and 32 cents, respectively. FY12 EPS is raised from $1.11 to $1.15.
For an analyst ratings summary and ratings history on SolarWinds click here. For more ratings news on SolarWinds click here.
Shares of SolarWinds closed at $29.49 yesterday.
SolarWinds issued initial fiscal 2012 (FY12) guidance including revenue growth of 23 to 27 percent, implying revenue of $241 to $249 million. The Street was expecting revenue of $238 million. SolarWinds is also targeting operating margin of 50 percent.
For FY12, there will also be a shift in priority, with more focus placed on cross-sell into its already installed based. Opportunity for SolarWinds is large, with Jefferies noting a market of about $6 billion or more. Currently, SolarWinds is in the process of building a dedicated sales team for this initiative. Jefferies further commented that, "New product enhancement remains a part of the strategy where broader platform support within the storage and virtualization products likely marks the next milestone."
Additionally, SolarWinds will turn some focus toward International growth in FY12, as its web presence has been solidifying. For this venture, SolarWinds has been recruiting more local partners, establishing a community presence, and localizing it's web presence. All this should add up to a busy local-language product release in FY12.
On the meeting, Jefferies is boosting numbers for FY12: second- through fourth-quarter EPS numbers move from 26, 29, and 30 cents to 27, 31, and 32 cents, respectively. FY12 EPS is raised from $1.11 to $1.15.
For an analyst ratings summary and ratings history on SolarWinds click here. For more ratings news on SolarWinds click here.
Shares of SolarWinds closed at $29.49 yesterday.
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