Zacks_Analysts' Blog : RightNow Ups Outlook - Analyst Blog

RightNow Technologies (RNOW) recently released its preliminary results for the third quarter of 2010. Based on preliminary information and subject to the quarterly accounting close and review procedures, RightNow expects to report revenues of $48 million, up from the previous estimate of $45 million.

Management stated that the third quarter was strong driving continued momentum. RightNow Technologies is a leading provider of on-demand customer relationship management (CRM) software solutions designed to optimize customer service operations for businesses of all sizes.

RightNow provides RightNow CX, an on-demand (cloud-based) suite of customer experience software and services that help consumer-centric organizations improve performance. Software-as-a-service (Saas) is currently the most powerful trend in the software market and RightNow plans to capitalize on this opportunity. The company's on-demand model or Sotware as a Service reduces the cost and risks associated with deploying traditional enterprise CRM software.

Earnings per share (EPS) are now forecasted at approximately 7 cents, up from the previous estimate of 5 cents.

The current Zacks Consensus Estimate for the third quarter is 6 cents with an upside potential of 33.33%. With the guidance upgrade, we expect further revisions in the estimate.

RightNow has consistently reported numbers that have beaten expectations. In the second quarter, RightNow reported an EPS of 3 cents, beating the consensus estimate by 3.33%. On an average, RightNow has come ahead of the Zacks Consensus Estimate by 311.11% in the last four quarters. Excluding stock-based compensation expense, net income per share is expected at 14 cents, up from the previous estimate of 12 cents.

The upgrade in guidance has impressed investors. The stock jumped 16.58% to close at $23.48 in regular trading. However, the stock dipped 0.13% in after hours trading to close at $23.45.