Kenexa stock up sharply on earnings, outlook
WAYNE, Pa. — Kenexa Corp., which makes Web-based recruitment and employee development tracking software, said Monday its expects 2008 adjusted profit of $1.47 to $1.50 per share on revenue of $230 million to $235 million, well above Wall Street expectations. The company also reported quarterly earnings above expectations.
Kenexa has an Employee Research Center in Lincoln that employs about 275 people.
Analysts surveyed by Thomson Financial on average expect adjusted earnings of $1.39 per share on revenue of $221.5 million.
Shares rose almost $2 to $20.59, more than 10 percent, in early trading Tuesday.
For the second quarter, Kenexa forecast profit excluding items of 34 cents or 35 cents on sales of $56 million to $57 million, compared with analysts’ average forecast of 34 cents on sales of $53.7 million.
For the first quarter, net income grew to $4.8 million, or 20 cents per share, from $4.7 million, or 19 cents per share, a year ago. Excluding one-time items, the company earned $7.3 million, or 31 cents per share, in the latest period.
Revenue rose 14 percent to $48.2 million from $42.2 million, helped by a 13 percent gain in subscription revenue to $39.2 million and a 20 percent jump in professional services and other revenue.
Analysts surveyed by Thomson Financial expected profit of 23 cents per share, excluding stock-based compensation costs, on revenue of $48.8 million.
"We continue to see new customers moving forward with purchase decisions in spite of the more challenging economic environment, as evidenced by a record number of new preferred partner customers signing up with Kenexa in the quarter," said Rudy Karsan, chief executive.
Kenexa has an Employee Research Center in Lincoln that employs about 275 people.
Analysts surveyed by Thomson Financial on average expect adjusted earnings of $1.39 per share on revenue of $221.5 million.
Shares rose almost $2 to $20.59, more than 10 percent, in early trading Tuesday.
For the second quarter, Kenexa forecast profit excluding items of 34 cents or 35 cents on sales of $56 million to $57 million, compared with analysts’ average forecast of 34 cents on sales of $53.7 million.
For the first quarter, net income grew to $4.8 million, or 20 cents per share, from $4.7 million, or 19 cents per share, a year ago. Excluding one-time items, the company earned $7.3 million, or 31 cents per share, in the latest period.
Revenue rose 14 percent to $48.2 million from $42.2 million, helped by a 13 percent gain in subscription revenue to $39.2 million and a 20 percent jump in professional services and other revenue.
Analysts surveyed by Thomson Financial expected profit of 23 cents per share, excluding stock-based compensation costs, on revenue of $48.8 million.
"We continue to see new customers moving forward with purchase decisions in spite of the more challenging economic environment, as evidenced by a record number of new preferred partner customers signing up with Kenexa in the quarter," said Rudy Karsan, chief executive.
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