Cognos Beats Estimates

Business solutions provider

Cognos

(COGN)

posted stronger-than-expected fourth-quarter results on steady demand and a reversal of a previous restructuring charge.

The company said it earned $26.9 million, or 29 cents a share, up from $22.1 million, or 24 cents a share, in the year-ago period. The results include a $2.6 million, or 2 cents a share, reversal of a previous charge because costs of the restructuring were less than previously expected.

Revenue for the quarter fell to $142.8 million from $144.1 million last year, but rose 15% from the previous quarter.

The unexpectedly strong results surprised Wall Street analysts, who had been expecting Cognos to earn 22 cents a share, according to Thomson Financial/First Call.

In a press release, the company said its bookings continued to grow, with contracts greater than $200,000 reaching their highest level ever in the quarter. Without providing specific guidance, the company said its outlook remains positive given the strong momentum. First Call analysts are currently expecting EPS of 12 cents for the first quarter.

Shares of Cognos were recently down on the news, falling 9.7% to $23.60 after closing at $26.14 on Wednesday.