RSA Security (RSAS) said it will beat Wall Street's revenue estimates for the first quarter of 2006. The Bedford, Mass., company also raised the midpoint of its sales and earnings revenue guidance for the just-completed fourth quarter of 2005.
The announcement came after Monday's closing bell, a session in which shares of RSA jumped 82 cents, or 6.5%, to $13.69. In what looked like a "sell on the news" reaction, shares were off 49 cents in recent after-hours trading on Instinet.
RSA said it expects to post a GAAP profit of 15 cents to 19 cents on sales of $81 million to $82 million for the fourth quarter. Last month, it told investors that revenue would range $78 million to $82 million and GAAP earnings would range from 9 cents to 16 cents.
On a non-GAAP basis, EPS will be 16 cents or 17 cents, the company said.
Excluding one-time items, Wall Street analysts had been expecting earnings of about 16 cents a share, on sales of $80 million, according to Thomson First Call.
The company said that it won a $10 million contract to deliver its authentication fobs during the fourth quarter, the largest in its history. The quarter also produced record bookings, RSA said.
RSA will report final numbers for the quarter and give additional guidance on Jan. 30.