SourceFire Stock Up 26% On Security Firm's Earnings
SourceFire (FIRE) stock was trading up 26% by late afternoon Wednesday after the security firm reported a strong quarter and outlook late Tuesday.
SourceFire makes advanced network security software that runs on appliances — primarily for next-generation intrusion prevention. Interest in and prospects for its newly introduced next-gen firewall "led us to say on the call that we believe we could grow our business 20% or more for all of 2012," SourceFire Chief Financial Officer Todd Headley told IBD, referring to the company's earnings conference call with analysts. It also has a new advanced malware protection product that includes anti-virus.
SourceFire took in revenue of $53.2 million in the fourth quarter, up 40% from a year ago and where analysts expected $47 million. It earned 25 cents per diluted share, up from 17 cents a year ago and ahead of estimates for 19 cents. For Q1, the Columbia, Md., company expects sales of $40 million to $42 million and per-share earnings of 6 to 8 cents. Analysts have been looking for $41.05 million revenue and 7.4 cents.
