JDA Software Group, Inc.

JDA Software Group, Inc. (JDAS - Snapshot Report) is bucking the economic downturn as the company recently reported record second quarter results on the back of strong software sales. JDAS is trading with a forward P/E of 13.9.

Company Description

JDA Software provides supply chain solutions to companies to optimize operations, especially in the area of software. It serves customers worldwide including retailers, manufacturers, and wholesaler-distributors.

JDA Software Saw Record Second Quarter Results

On July 20, JDA Software reported second-quarter 2009 results that surprised on analysts' estimates by 3.45%. It was the third time in the last four quarters that the company has surprised on estimates.

Earnings per share were 30 cents compared with Wall Street estimates of 29 cents.

Revenue jumped 8.4% to $99.5 million from $91.8 million in the second quarter of 2008. Software revenue climbed 78% to a record $27.6 million from $15.5 million.

The company closed 68 new software deals, including 5 contracts exceeding $1 million. 3 of the contracts were in the Americas, one was in Europe and one was in Asia Pacific.

JDA continues to expand in China as it announced plans to quadruple the number of Chinese nationals available to serve customers in China over the next two years. The employees would be concentrated in support, consulting and sales.

JDA also recently signed a relationship agreement with Beijing-based eFuture Information Technology to assist with growth in the region.

Cash Hoard Expands

The company expanded its cash holdings to $92.7 million at the end of the second quarter from $32.7 million at the end of Dec 2008.

The cash puts JDA Software in an envious position in these economic conditions because the company had no debt at the end of either period.

Consensus Estimates Rise

Covering analysts are bullish about the third quarter and the full year.

3 out of 4 covering analysts raised third quarter estimates by 4 cents to 33 cents in the last week.

2009 consensus estimates jumped 23% in the last 7 days to $1.46 from $1.19 per share.

Value Fundamentals

JDA Software is a Zacks #1 Rank (strong buy) stock. It has a price-to-book of 1.76. The company also has a 1-year return on equity (ROE) of 13.37%.

Read the full analyst report on JDAS