Why Lionbridge Technologies (LIOX) Is Surging Today

NEW YORK (TheStreet) -- Lionbridge Technologies  (LIOX) was soaring 26.23% to $6.69 on Tuesday after the translation and localization services company announced fourth-quarter earnings that surpassed analysts' expectations.

The company posted adjusted earnings of $10.9 million, or 18 cents a share, which beat the consensus estimate of 5 cents a share from analysts polled by Thomson Reuters. Revenue increased 12% to $127.5 million, which beat expectations of $121.72 million and marked an increase from $113.84 million in the same period a year earlier.

Lionbridge posted fourth-quarter net profit of $6.5 million, or 10 cents a share, up from $3.3 million, or 5 cents a share, in the same quarter a year earlier.

The company forecast revenue in the range of $120 million to $123 million for the first quarter.

"The fourth quarter marked yet another quarter of strong top line growth, solid earnings expansion and increasing cash flows," said CEO Rory Cowan in the company's statement. "Our second half momentum and strong new business pipeline underscore that  we have the right strategy, the right model and the right offerings to deliver sustainable annual revenue and earnings growth. As we apply our unique crowd-in-the-cloud model to new applications and new markets, we expect ongoing growth in 2014 and beyond."

TheStreet Ratings team rates LIONBRIDGE TECHNOLOGIES INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about its recommendation:

"We rate LIONBRIDGE TECHNOLOGIES INC (LIOX) a BUY. This is driven by a number of 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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Lionbridge Technologies (LIOX) Downgraded From Buy to Hold