Bottomline Tech shares soar on strong Q1 results, raised FY view
Oct 23 (Reuters) - Shares of Bottomline Technologies Inc (EPAY.O: Quotazione) soared 18 percent to a new 52-week high on Friday, a day after the electronic payment and invoice services provider posted a strong first-quarter profit and raised its full-year outlook.
On a conference call with analysts Thursday, the company had raised its 2010 core earning view to $1 per share from an earlier view of 73 cents to 75 cents a share.
Barrington Research analyst Gary Prestopino raised his price target on the company's stock to $20 from $16, citing strong demand from end markets and a solid outlook for the remainder of fiscal year 2010.
Excluding items, Bottomline earned 27 cents a share for the third-quarter, well ahead of analysts' mean estimate of 18 cents a share, according to Thomson Reuters I/B/E/S. [ID:nWNAB3054]
"Better-than-expected first-quarter results were driven by solid demand from end markets, increased utilization of EPAY's implementation services and the operational leverage in the company's business model," Prestopino said in a note to clients.
Prestopino added the company has strong secular growth opportunities, driven by its shift to electronic-based processes and acquisition of PayMode network, which includes 90,000 vendors and an ability to interface with any banking institution.
In September, Bottomline had bought the PayMode electronic settlement network from Bank of America Corp (BAC.N: Quotazione), and said it expected the deal to benefit its outsourced solutions segment, which contributed about 18 percent to the company's 2009 revenue.
Shares of Bottomline Technologies were up 16 percent at $14.97 in Friday afternoon trade on Nasdaq. They had touched a high of $15.23 earlier in the session. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Pradeep Kurup)
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