ArcSight, Inc.

ArcSight, Inc. (ARST - Snapshot Report) is fresh off the heels of an impressive third-quarter in which the company's income more than doubled from the same period last year.

Company Description

ArcSight, Inc. provides compliance and security software solutions for technology infrastructure to the private sector and government agencies. The company was founded in 2000 and has a market cap of $368 million.

Technology security continues to be a core issue for most companies, driving demand for software programs that provide these valued products and services. This demand-pull dynamic was evident when ArcSight reported strong third-quarter results on March 6.

Third-Quarter Results

Revenue was up 31% from last year to $36.4 million. Net income more than doubled, coming in at $5.1 million. Earnings totaled 16 cents per share, blowing past the consensus estimate of 4 cents.

Estimates Move Higher

After the solid quarter, analysts went ahead and raised their earnings targets, with the current-year estimate climbing 11 cents to 23 cents per share. The next-year estimate is pegged at 32 cents, a 37% earnings growth projection.

The Chart

Shares of ARST have been rallying for most of the last four months, bottoming out in late November right around the $5 mark. Since then, this stock has advanced as high as $12.50, an impressive short-term return. Take a look at the chart below.