) posted second quarter earings per ADS of 25 cents, vs. 13 cents one year earlier. Bear Stearns raised its rating on the shares to outperform from neutral.
Analyst Toby McCullagh says the company's results beat its guidance -- and analysts' consensus -- by a clear margin. He says both license and services revenue delivered upside, while good cost control saw this filter through to earnings. McCullagh says channel checks confirm that Business Intelligence market is hot, likely to remain one of fastest growing segments in software. Although the competition is intense, he believes the company's leadership position and increasingly compelling product portfolio should deliver market share gains in this attractive segment. He raised his $1.12 2005 earnings per ADS estimate to $1.15. The analyst also set a $37 price target on the stock.