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Tibco Software shares rise on 4Q earnings beat

NEW YORK (AP) -- Shares of Tibco Software Inc. rose Friday after the company posted better-than-expected fiscal fourth-quarter profit.

THE SPARK: For the quarter ended Nov. 30, Tibco earned $48.8 million, or 29 cents per share, down 6 percent from $51.9 million, or 30 cents per share, in the same quarter a year ago. Excluding one-time items, the company posted adjusted profit of 42 cents per share.

Revenue rose 2.4 percent to $296.5 million.

Analysts, on average, expected 39 cents per share on $297.9 million in revenue, according to FactSet.

THE BIG PICTURE: The Palo Alto, Calif.-based business software company said it's confident of its market position and opportunities for growth as it enters 2013. It didn't offer financial guidance for the current quarter or the new fiscal year.

THE ANALYSIS: Stifel Nicolaus analyst Brad Reback backed his "Buy" rating for Tibco, but noted that the better-than-expected profit came after the company issued disappointing guidance for the quarter earlier this month, which prompted analysts to cut their estimates.

Reback said that while it appears Tibco is working to fix its problems, by hiring new executives and implementing more structure in its sales process, it still may take a few quarters to get that done.

"That said, given easing comparisons in the back half, a potentially more certain macro-environment, ramping sales capacity and productivity, and a reset bar, we believe the name sets up well for second half 2013 to deliver both a re-acceleration in license revenue and upwards earnings revisions," Reback wrote in a note to investors.

THE SHARES: Up $1.55, or 7.5 percent, to $22.29 in heavy afternoon trading. They peaked at $22.47 earlier in the session. Over the past 52 weeks, the stock has traded between $18.95 and $34.67.