Sourcefire (FIRE) sees acceleration of revenue growth as it continues its seven quarter streak of positive earnings surprises. This help to make the stock a Zacks #2 Rank (Buy).
Sourcefire makes intelligent Cybersecurity technologies to commercial enterprises and government agencies. The company's network security products include Sourcefire appliances for detecting, blocking, and analyzing network traffic. It also offers FireAMP, a malware protection solution that uses data analytics to discover, understand, and block malware outbreaks Sourcefire was founded in 2001 and is headquartered in Columbia, Maryland.
Sourcefire Has Seven Straight Positive Surprises
Sourcefire has topped the Zacks Consensus Estimate in seven straight quarters. The beats have been solid, with the company posting earnings that are $0.05 higher on average. Since earnings are still relatively small, it works out to an average of 145% positive surprises for Sourcefire. Following these seven positive earnings surprises, the stock has reacted positively five times. On average, the stock was higher by 3.9% in the session following the earnings report.
In the December 2011 quarter, the stock rose more than 26% following a 60% positive earnings surprise. The company reported earnings of $0.16, $0.06 more than the Zacks Consensus Estimate. Revenues of $53 million were approximately $6 more than the Zacks Consensus Estimate and represented a 39% increase from the year ago period.