Filed under: Investing
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of AVG Technologies NV popped more than 13% Thursday after the online security specialist reported better-than-expected fourth-quarter results.
So what: Quarterly revenue increased 7% year over year to $101.9 million, including a 25% increase in subscription revenue, to $67.3 million. This, in turn, translated to adjusted net income of $0.52 per diluted share. Analysts were only looking for earnings of $0.41 per share on sales of $95.22 million.
In addition, AVG provided a "broad revenue outlook" for 2014 in the range of $365 to $405 million, with adjusted earnings per diluted share of $1.80 to $2.10. Analysts, on average, were modeling 2014 earnings of $1.92 per share on sales of $394.31 million.
Now what: Taking the midpoint of AVG's guidance -- and even despite AVG's modest top-line growth -- the stock looks pretty attractive trading around 10 times this year's expected earnings. Assuming AVG can continue controlling costs to maximize its bottom line, I think the stock has what it takes to reward investors over the long term.
So you want to invest in the next big thing?
But if AVG doesn't quite whet your appetite for growth, you're in luck! Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure play," and then watch as it grows in EXPLOSIVE lockstep with it's industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.
The article Why AVG Technologies NV Shares Popped originally appeared on Fool.com.Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.