U.S. Markets open in 4 hrs 20 mins

Why Pareteum Stock Soared Wednesday

Daniel Sparks, The Motley Fool

What happened

Shares Pareteum (NASDAQ: TEUM) surged on Wednesday. The stock rose as much as 31.7%. As of 2:36 p.m. EDT, shares were up 23.9%.

The stock's gain was driven by the cloud communications platform company's strong fourth-quarter results, which were announced after market close on Tuesday.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Pareteum's fourth-quarter revenue soared 256% year over year to $14.3 million. Revenue was helped by the company's acquisition of Artilium -- a mobile virtual network and Internet of Things enabler -- in late September. 

Pareteum's non-GAAP earnings per share for the period were $0.02, even with its non-GAAP earnings per share in the year-ago quarter.

Analysts, on average, were expecting revenue of around $13 million and non-GAAP EPS of $0.01. 

Now what

Management is optimistic about 2019, with the company's principal executive officer, Hal Turner, noting:

Looking ahead to 2019, we are very excited about the tremendous opportunities for Pareteum given the strong industry dynamics; our visibility into future revenue from our 36 Month Contractual Revenue Backlog; and, the augmented talent, product, services, network expansion and productivity improvements implicit from our strategic acquisitions.

Management guided for full-year 2019 revenue to be between $105 and $116 million, representing 225% to 260% year-over-year growth.

More From The Motley Fool

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.