Bazaarvoice (BV) Stock Soaring on Q3 Results

NEW YORK (TheStreet) -- Shares of Bazaarvoice (BV) are climbing by 12.38% to $3.54 on heavy trading volume late Wednesday afternoon, following the release of the company's 2016 third quarter results.

After yesterday's closing bell, the Austin-based software company posted earnings of 2 cents per share, beating analysts' estimates for a loss of 3 cents per share.

Revenue increased by 1.4% to $50.3 million year-over-year and was slightly higher than Wall Street's expectations of $50 million.

"We believe that Bazaarvoice is in a unique position with our strong client base, our broad consumer generated content offerings, and our shopper advertising initiative to monetize our network and drive revenue growth over the long term," CEO Gene Austin said in a statement.

The company's number of active clients at the end of the period was 1,383 and annualized SaaS revenue per average active client was about $140,000. Bazzarvoice had more than 4,900 network clients by the end of the quarter.

Pacific Crest maintained its "sector weight" rating on the stock following the results.

"The company announced a headcount reduction and its exit from the low end of the SMB market. These changes position BV for improving profitability over time, in our view, but we remain on the sidelines during the transition," the firm said in an analyst note.

About 1.39 million of the company's shares were traded by this afternoon vs. its average volume of 656,631 shares per day.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

This is driven by some concerns, which 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 covered.

Among the areas the team feels are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: BV

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