MicroStrategy Inc.

MicroStrategy Inc. (MSTR - Snapshot Report) recently jumped higher after the company reported better than expected Q3 earnings. Estimates are also on the rise, with the next-year estimate projecting 13% earnings growth.

Company Description

Microstrategy Inc. provides business intelligence software worldwide. The company was founded in 1989 and has a market cap of $1.07 billion.

Shares of MSTR gapped higher on Oct 30 after the company reported better than expected Q3 results on strong sales and operational efficiencies.

Third-Quarter Results

Sales were up 15% from last year to $104 million. Earnings also came in strong at $1.73 per share, easily beating the Zacks Consensus Estimate of 94 cents.

The company noted that the increase in sales and earnings came on enhanced productivity, as operating expenses increased just 1% from the same period last year to $57.1 million. Microstrategy also strengthened its balance sheet, increasing cash and equivalents by $77.8 million from Dec. of 2008 to $200.7 million.

Estimates Jump

Estimates jumped higher on the good quarter. The current year added $1.09 and climbed to $4.82. The next-year estimate added $1.57 to $5.45, a 13% growth projection.

Valuation

The big upward revision in estimates has helped the valuation picture, with shares trading with a forward P/E of 18.5X.

The Chart

Shares of MSTR gapped higher on the strong quarter and higher estimates, hitting a new 52-week high just above $92. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

Read the full analyst report on MSTR