NEW YORK (TheStreet) -- Demandware (DWRE) gained 10.4% to $70 after announcing quarterly results that beat analyst estimates for earnings and revenue. The company also announced that it is searching for a new CFO.
In its fourth-quarter earnings report Demandware posted earnings of 16 cents a share, beating the Capital IQ Consensus Estimate of 15 cents a share by 1 cent. The company saw revenue increase by 35% to $35.5 million in the quarter. Analysts estimated revenue of $33.2 million in the quarter.
The company said that contract backlog reached $348.6 million by Dec. 31, 2013, a 67% increase from the year-ago period.
In addition to the earnings report Demandware announced that CFO Scott Dussault will leave the company, and that it will launch a search for a new CFO. Dussault will serve as CFO until June 6, 2014, and will be able to serve as an advisor for the company until June 2015.
TheStreet Ratings team rates DEMANDWARE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEMANDWARE INC (DWRE) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."