Starent Networks Corp.

Starent Networks Corp. (STAR) is fresh off the heels of another excellent quarter in which its earnings were easily ahead of analyst estimates. The company's share price has been accelerating since finding a short-term bottom in mid November.

Company Description

Starent Networks, Corp. provides infrastructure hardware and software products and services that enable mobile operators to deliver multimedia services to their subscribers. The company was founded in 2000 and has a market cap of $989 million.

Fourth-Quarter Results

Starent stepped up and reported fourth-quarter results on Jan 29 that were ahead of analyst estimates. Revenue was up 40% from last year to $70.6 million. Income also surged, jumping to $17.5 million from $4.2 million, producing earnings of 24 cents per share, 8 cents ahead of estimates.

Consistent Results

Starent has a record of producing consistent results and beating expectations, having done so by an average of 7 cents, or 76% over the last four quarters.

Full-Year Results

Full-year income was up big from the previous year, coming in at $60.5 million compared to $11.5 million.

Estimates

Analyst estimates have held mostly steady since the solid quarter, with the current-year estimate advancing one penny to 47 cents per share. The next-year estimate is also up one penny to 55 cents, a 17% earnings growth projection.

Valuations

Based upon the current-year estimate, this stock is fairly expensive, trading with a forward P/E multiple of 30X, a steep premium to the overall market.

The Chart

Shares of STAR have been on a steady rally since mid November, having recently accelerated a bit and surged past a short-term level of resistance at $13.50. Moving forward, with the pricey valuation, this company will need to deliver robust earnings in order to support more appreciation. Take a look below.