PeopleSoft Gets Hot at the Right Time

The company will beat top-line, bottom-line and license revenue estimates.
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Confounding increasingly skeptical analysts and potentially reducing the chance it will be bought out,

PeopleSoft

(PSFT)

said Wednesday that nearly every line item of its second-quarter earnings statement will be better than expected.

The business-software maker, which is fighting off a hostile overture from

Oracle

(ORCL) - Get Report

, expects recurring earnings of 14 cents or 15 cents a share on revenue of $490 million to $500 million. Analysts were expecting earnings of 10 cents a share and revenue in the $450 million range -- although those estimates had in many cases been coming down in recent days.

License revenue, the key sales metric for most software companies, will be $105 million to $115 million -- far better than the roughly $90 million most analysts were forecasting.

PeopleSoft's shares, the value of which has recently been a function of investors' faith in Oracle's $19.50 buyout offer, recently were up 9 cents, or 0.5%, to $17.89.

"Against all odds and odds makers, under the most challenging conditions a company can face, PeopleSoft not only met but significantly exceeded our original financial guidance," the company said in a statement.

"In an undeniable vote of confidence, both existing customers and new customers continued to select PeopleSoft for their enterprise software applications. They continued to choose PeopleSoft for our stronger products and better architecture. They continued to choose a company with a real commitment to customer satisfaction," it said.