MicroStrategy, Inc.

MicroStrategy, Inc. (MSTR - Snapshot Report) recently spiked to a new multi-year high after reporting an awesome 72% Q4 earnings surprise in late January. Estimates have since jumped higher, providing more support and momentum for this Zacks #1 rank stock.

Company Description

MicroStrategy operates as a business intelligence software maker that helps companies collect and analyze data. The company was founded in 1989 and has a market cap of $1.2 billion.

Although the general trend for MSTR has been higher for the last few years, shares took a cosmic jump in late January after the company reported strong fourth-quarter results that handily beat expectations.

Fourth-Quarter Results

Revenue for the period was up 31% from last year to a record $139 million. Earnings also looked great, coming in at $1.60, 72% ahead of the Zacks Consensus Estimate.

The gains were driven by licensing revenue, which increased 59% to $48 million. Its largest segment, support and service for its business intelligence suite, saw sales increase 20% from last year to $86 million.

Financial Profile

Moving forward. MicroStrategy will continue to benefit from its strong financial profile, with cash and equivalents of $174 million and no long-term debt.

Estimates

We saw some pretty solid movement in estimates off the good quarter, with the current year adding 33 cents to $3.79 and the next-year estimate gaining 99 cents to $4.74, a bullish 25% growth projection.

Valuation

In light of the recent gains, MSTR trades at a premium to its peers with a forward P/E of 30X compared to 23X.

12-Month Chart

On the chart, MSTR has been trending higher for most of the last two years before jumping higher to a new high on the good earnings surprise. Look for support from the long-term trend on any weakness. Take a look below.

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

Read the full analyst report on MSTR