BroadSoft, Inc. (BSFT) Beats Q4 Expectations

BroadSoft, Inc. (BSFT) shares are up $2.09 to $29.39 in pre-market trading Wednesday following the company’s fourth quarter earnings results.

The telecommunications software firm reported non-GAAP earnings of $0.64 per share on revenues of $65.8 million, up 26.5% from a year ago. Analysts were expecting EPS of $0.57 on revenues of $63.06 million. For the year, the company reported net income of $1 million, or $0.03 per share. Revenue came in at $216.9 million.

For Q1’15, BroadSoft provided EPS guidance of $0.13-$0.21 versus consensus of $0.19 per share. The company also issued revenue projection of $52-$56 million, compared to the consensus revenue estimate of $52.14 million. For the full fiscal 2015, BroadSoft expects revenue of $260-$268 million. EPS on a non-GAAP basis is expected to be $1.40 to $1.64 per diluted share.

“Our fourth quarter capped a year of strong revenue, billings and cash flow growth that were attributable primarily to strength in our hosted Unified Communications businesses,” said Jim Tholen, CFO, BroadSoft. “We expect 2015 to be another strong year for revenue and billings growth, aided in part by several significant new projects at tier-1 service providers. We are investing to support those projects and others that we believe will be important to our success not just this year, but also in 2016 and beyond.”

On valuation measures, BroadSoft Inc. shares, which currently have an average 3-month trading volume of 194,544 shares, trade at a forward P/E of 17.61 and a P/E to growth ratio of 1.46. The median Wall Street price target on the name is $32.00 with a high target of $32.00. Currently ticker boasts 7 ‘Buy’ endorsements, compared to 5 ’Holds’ and no ‘Sell’.

Profitability-wise, BSFT has a t-12 profit and operating margin of (3.73%) and (1.35%), respectively. The $786.40 million market cap company reported $101.54 million in cash vs. $95.63 million in debt in its most recent quarter.

BSFT currently prints a one year loss of about 12.30%, and a year-to-date loss of around 6%.

The chart below shows where the equity has traded over the last 52 weeks.

BroadSoft Inc. provides software and services that enable mobile, fixed-line, and cable service providers to deliver hosted or cloud-based unified communications and other voice and multimedia services over IP based networks. The company was founded in 1998 and is headquartered in Gaithersburg, Maryland.

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