Compellent Tech. Inc.

Compellent Technologies, Inc. (CML) is at a multi-year high and fresh of an impressive earnings report. Analysts continue to revise estimates to keep up with the company's growth.

Company Description

Compellent offers enterprise-class storage services. The company provides scalable solutions that are easy and cost effective, yet remain feature-rich.

Revenues Spike

In an Oct 28 report, the company announced third-quarter results that included revenue of $32.2 million. This was up 31% year-over-year and 12% on a sequential basis.

Earnings per share came in at 7 cents, much higher than the 1 penny analysts were expecting. This was the seventh consecutive earnings surprise.

Increasing Demand

Phil Soran, president and CEO, said, "This quarter we experienced strength across all geographies and a growing awareness of the Compellent solution. As the demand for efficient storage technologies continue, regardless of whether companies are virtualizing IT, building private clouds or buying cloud services, we continue to gain traction in the marketplace."

Surging Estimates

Following the announcement, full-year estimates jumped to 15 cents, from 8 cents. The Zacks Consensus Estimate for next year is now 23 cents, up from 16 cents.

This year's projected growth rate is skewed, given that Compellent lost 1 penny last year, but the growth rate for next year is expected to be more than 51%.

Over the past 30 days, 18 upward estimate revisions were supplied by the 13 analyst providing forecasts for this year.

The Chart

Shares of CML are trading at levels not seen since its IPO, in late 2007. As you can see in the chart below, these highs are accompanied by increasing volume, which is much better than a rally on lighter than normal volume.

Read the full analyst report on CML