SolarWinds (SWI) Beats Q4 Earnings and Revenue Estimates

Core Viewpoint - SolarWinds reported strong quarterly earnings, significantly surpassing expectations, indicating robust performance in the information-technology management software sector [1][2]. Financial Performance - The company achieved earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and up from $0.24 per share a year ago, representing an earnings surprise of 88.89% [1]. - SolarWinds posted revenues of $210.31 million for the quarter, surpassing the Zacks Consensus Estimate by 3.69%, and an increase from $198.14 million year-over-year [2]. Market Performance - SolarWinds shares have increased approximately 27.9% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for continued outperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $199.27 million, and for the current fiscal year, it is $1.09 on revenues of $811.29 million [7]. - The trend of estimate revisions for SolarWinds has been favorable leading up to the earnings release, which may influence future stock movements [6]. Industry Context - The Internet - Software industry, to which SolarWinds belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8].