SkillSoft Plc.

SkillSoft Plc. (SKIL) is one of the few companies whose share price is trading in the green in 2008. The company has been able to grow its profits in a tough environment, and remains bullish on its future.

Company Description

SkillSoft Plc. develops education and performance support solutions for the private sector and governments worldwide. The company was founded in 1989, has a market cap of $941 million and is headquartered in Nashua, NH.

Second-Quarter Results

SkillSoft has deftly navigated a challenging economic landscape and continued to grow its earnings, seen by the company solid second-quarter results, reported on Aug 22.

Revenue came in at $83.3 million, a 17.5% increase from the same period last year. Net income totaled $12.9, producing earnings of 10 cents per share, ahead of analyst estimates by 3 cents.

This was the fourth time in the last four quarters that SkillSoft has surprised and beaten analyst estimates, having done so by an average of 4 cents, or 212%.

Cash In Hand

At a time when financing is both difficult to access and very expensive, SkillSoft noted that it has approximately $85.9 million in cash and cash equivalents to help it fund day-to-day operations and longer term projects.

Guidance and Estimates

After an the encouraging quarterly results, SkillSoft went ahead and raised its full-year 2009 guidance, and now expects earnings between $38 million and $41 million, producing earnings between 35 and 38 cents per share. Previously, the company had been expecting earnings between 32 and 35 cents per share.

The analyst community is bullish as well, with the next-year estimate pegged at 55 cents per share, a 49% earnings growth projection.

Based upon the current-year estimate, this stock is trading at a premium to the overall market, carrying a forward P/E multiple of 24X.

The Chart

Shares of SKIL have performed admirably in 2008, trading in the green for most of the year when many other stocks have turned lower. Moving back to 2007, this stock has been on a gradual up trend. Take a look at the chart below.