Business Objects Booms

It beats estimates and raises guidance.
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Business Objects

(BOBJ)

jumped after hours on a big second-quarter earnings beat and raised guidance.

The company arned $23.1 million, or 25 cents a share, in the quarter, compared with earnings of $11.5 million, or 13 cents a share, last year. Adjusted earnings were $29.7 million, or 33 cents a share, in the second quarter of 2005, beating estimates by 6 cents.

Business Objects' second-quarter revenue jumped 18% from last year to $262.4 million, about $8 million ahead of estimates. Software license revenues totaled $124.9 million in the second quarter of 2005, up 7% from a year ago.

For all of 2005, the company now sees adjusted earnings of $1.16 to $1.24 a share, above the Thomson First Call consensus estimate of $1.14 a share. In the third quarter, Business Objects expects to earn 25 cents to 28 cents a share on a pro forma basis on sales of $248 million to $253 million. Analysts were calling for 25 cents a share and $248 million.

Shares vaulted $2.75, or 9.5%, to $31.65 after hours.