Support Inc. (NASDAQ:SPRT), a provider of cloud based services designed to enhance customer experience with technology, has reported strong results for Q2 2013. The company reported 16% jump in revenues, accompanied by a huge 200% gain in its EPS. These are numbers which the company has not seen for over 5 years now. The impressive numbers over 4 consecutive quarters follow five years of losses and negative cash flows. The fact that the company has for the first time in close to seven years reported 4 consecutive quarters of increasing profits and cash flows made us look into the numbers the company is generating. As per an IDC report, the cloud based industry is expected to grow at a CAGR of 20% to 24% over the next four years.
Support Inc. has seen its revenues grow at an average annual rate of 24.31% over the last 4 quarters. Considering the growth rate, the opportunities ahead, and the increasing Net Income margins which the company has generated over the last few quarters we expect the company to report an EPS of 5 cents per share for the coming quarter. Also based on our current conservative estimates we expect the stock to hit a target price of $6.17% from its current price of $5.61.
To see the latest stock price movement, click on SPRT stock chart.
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