surged higher on Tuesday after the company's
first-quarter earnings report beat Wall Street expectations while offering a bright outlook for the second quarter.
In heavy trading, RSA added $2.65, or a whopping 15.8%, hitting $19.47.
Analysts also were upbeat on the company, noting that RSA is doing well in a sector that seems to be struggling.
Brean Murray Carret analyst Andrey Glukhov upped his rating on RSA from sell to hold, citing an in-line quarter, robust key metrics and solid guidance for the second quarter. Brean Murray Carret seeks to do business with the companies it covers.
Goldman Sachs analyst Sarah Friar was similarly upbeat in a note to clients. "With consumers and the Cyota acquisition continuing to pick up the slack from a lull in the company's enterprise token renewal cycle, RSA is back to double digit year-over-year revenue growth in 2006, which should bode well for the stock as we move into the stronger second half of '06 when enterprise renewals pick up steam," she wrote, reiterating her in-line/attractive rating. Goldman does and seeks to do business with the companies it covers.
For the first quarter, the security company surpassed its revenue from a year-ago, amassing $87.5 million, up from $75.6 million. Analysts had predicted sales of $85.5 million.
The security-technology company earned $5.3 million, or 7 cents a share. Excluding some items, the company made a profit of $10.5 million, or 14 cents a share. That figure beat Thomson First Call consensus estimates by a penny.
A year ago, the company made $7.2 million, or 10 cents a share, but this GAAP figure did not include stock-based compensation charges, the company said.
For the second quarter, RSA said it expected revenue between $88 million and $92 million and earnings before items of 14 cents to 16 cents a share. Analysts forecast the company to return 14 cents a share on sales of $87.6 million.