NEW YORK (TheStreet) -- SolarWinds (SWI) - Get Report 2015 earnings estimates were raised to $2.07 from $2.05 per share at Jefferies, with 2016 earnings estimates increased to $2.49 from $2.37 per share.
The firm maintained its "buy" rating and $56 price target on the stock.
SolarWinds announced on Monday that it has authorized a share repurchase program up to $200 million to be completed over 12 months.
"We believe 2015 guidance for 23% constant currencies revenue growth, which implies organic constant currencies license growth, is reasonable, and SolarWinds is well-positioned to deliver against this," Jefferies analysts said.
Moreover, SolarWinds has a core go-to-market strategy, that is a low cost and low touch sales model relying heavily on web-based marketing and a "low touch" telesales force, in contrast to the large, direct "high-touch" sales forces employed by most enterprise software companies, Jefferies added.
SolarWinds is a holding company that develops and sells enterprise-class information technology (IT), infrastructure management software to IT and DevOps professionals in organizations of all sizes.
Shares of SolarWinds are gaining 1.30% to $38.96 in afternoon trading Wednesday.
Separately, TheStreet Ratings team rates SOLARWINDS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOLARWINDS INC (SWI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 17.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SWI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.49, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 65.5% when compared to the same quarter one year prior, rising from $13.38 million to $22.15 million.
- Net operating cash flow has slightly increased to $54.71 million or 7.36% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -29.04%.
- You can view the full analysis from the report here: SWI Ratings Report