Shares of Broadsoft (NASDAQ: BSFT) are down 19% in pre-open trade Tuesday following disappointing Q3 results and guidance. However, analyst George Notter at Jefferies is telling clients to buy the weakness.
The firm continues to like the company's 1) very strong growth prospects in the Hosted PBX / SIP Trunking space; and 2) free option on long-term success in the FMC/VoLTE space.
The firm maintained a Buy rating but trimmed their price target to $38.00 (from $39.75).
The firm also cut Q4 EPS from $0.52 to $0.42, FY 2013 EPS from $1.30 to $1.21 and FY 2014 EPS from $1.80 to $1.60.
Jefferies recommends using the post-earnings pullback in shares of BroadSoft as a buying opportunity. The firm says it continues to like the company's long-term growth prospects and maintains a Buy rating on the stock with a lowered price target of $38.
Yes his name Josh Burwick and his first pick was BSFT on 4 Oct. He raved about the stock. He should be posting on SA Re this earnings rpt. I say he SHOULD. Don't know if he will.
dude,the guy said thats hisguess....a 25% downside from todays close is not beyond the realms of imagination and possibilty....its a decent guess,
It's the marketing dept that's doing the spending. Cutting edge technology obviously sells itself while funneling cash directly back to shareholders... oops; that would be GTAT
Am super excited that I will get a nice sweet chance to re-short BSFT tomorrow again on strength.
The MMs are super smart though. They will probably gap this down way way too much at open to $25-26 or so, then it will rally from the opening price for an hour or two to reach $28-29 HOD, and then fizzle back down again until close back to $25. That is my guess.
Let us see.
Sentiment: Strong Sell
4:07PM Broadsoft misses by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus (BSFT) 33.14 +0.17 : Reports Q3 (Sep) earnings of $0.29 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.30; revenues rose 6.7% year/year to $42.9 mln vs the $45.22 mln consensus.