Monday, September 3, 2012

Quest Software Shares Sank: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Quest Software (Nasdaq: QSFT  ) have sunk today by as much as 12% today after the company reported fourth-quarter earnings and an executive change.

So what: Revenue rose 13% to $245.9 million in the fourth quarter, with earnings per share adding up to $0.51. The top line bested the market's expectations of $243.7 million in sales while the bottom line fell a penny short of the $0.52 consensus.

Now what: For the full year 2012, Quest expects total revenue to put up growth in the range of 8.5% to 10%, a deceleration compared �with the 12% growth seen for the full year 2011. CEO Doug Garn said the fourth quarter was tougher than normal, but the results were in line with Quest's guidance. Garn is also stepping down for personal health issues, handing over the reins to Vinny Smith, Quest's previous executive chairman. Garn will remain involved as vice chairman of the board.

Interested in more info on Quest Software? Add it to your watchlist by clicking here.

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