(SLH) – Solera Holdings – Analysts are forecasting earnings growth of 52%

Solera Holdings, Inc. (SLH) recently finished a solid fiscal 2008 and continue to project solid growth into 2009. Analysts are forecasting earnings growth of 52% for the next year, which starts this quarter.

Company Description

Solera Holdings is an integrated group of leading automotive claims solutions companies with the vision to continuously improve the automobile insurance claims processing industry worldwide. The Solera companies help customers automate and simplify their automobile claims process and improve their ability to monitor and manage their businesses through data reporting and analytics.

The company is headquartered in San Diego, California, with roughly 2,000 employees, and a market cap of $1.7 billion.

3 Consecutive Surprises

Solera reported its third consecutive earnings surprise on Aug 27 with EPS coming in at 33 cents. Headed into the fourth-quarter announcement, analysts were expecting earnings of 29 cents, good enough for a 14% surprise.

Fourth-quarter revenue was $146 million, up 19% year-over-year from $123 million. The increase in revenue was driven by collision repair facilities, which saw revenues rise 26% since the fourth quarter of 2007.

Bullish Guidance

Solera also issued forward looking guidance for fiscal-year 2009, which ends in June 2009 Incorporatedluding net income per share of between $1.45 and $1.55. The mid point of $1.50 represents a 52% increase over 2008, which came in at 99 cents.

Estimates have climbed across the board within the past 30 days. The consensus estimate for the current quarter is 33 cents per share, up 22% from 27 cents just 30 days ago.

The Chart

Shares of SHL have been climbing steadily for quite some time before breaking the trend recently. However, the stock is forming a nice level of support near $27 per share. Given the bear market we are in, it is no surprise to see a stock doing this well take a breather. If it can maintain this level, look for the bullish trend to continue sooner than later.

Content Courtesy: Zacks Investment Research

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