Peoplesoft stunned Wall Street on Tuesday with better than expected financial results, an achievement rarely seen in today's doom and gloom environment. Even more impressive was the company's upbeat guidance for the present quarter and the rest of year.
Such optimism is so rare nowadays that analysts verged on the euphoric as they discussed the firm. "They are an island. And it's very impressive," said Jon Ekoniak, a software analyst at US Bancorp Piper Jaffray.
What had everyone jumping for joy was that Peoplesoft had profits of $46m, or 14 cents a share, on revenue of $533m. A year ago, the company earned six cents a share on $420.2m in total revenue. Analysts were expecting earnings of 12 cents a share on revenue of $503.6m.
Peoplesoft said it was buoyant going forward and raised expectations of larger profits on increased sales for the year. Such optimism flies in the face of other enterprise software companies, which have been very cautious about the future.
"It's just pedal to the metal again. These guys continue to do it. They're very good at setting expectations low and then exceeding them," said Brent Thill, an analyst at Credit Suisse First Boston.
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