Overcoming customers' fears of war and an already sluggish economy, PeopleSoft managed to post an increase in total revenues for the third quarter ended Sept. 30, 2001 over same quarter last year, the company announced Thursday.
Following the announcement, analysts at Goldman Sachs and Prudential Securities raised their earnings estimates for the Pleasanton, Calif.-based collaborative enterprise software provider, according to Reuters.
"PeopleSoft continues to distinguish itself by delivering strong results under these extraordinarily challenging circumstances," said President and CEO Craig Conway.
PeopleSoft (Nasdaq: PSFT) posted 3Q01 total revenues of $509 million, compared to $443 million for same quarter last year, a 15 percent increase. However, total revenues fell 4 percent from this year's 2Q total revenues of $533 million.
Licensing revenues fell 8 percent sequentially from $166 million to $152 million in the quarter, but increased 15 percent over the same quarter last year, the company said.
Third quarter net income rose sequentially to $50 million, or $0.16 per share, up from $0.15 per share the previous quarter and down from $0.23 per share one year earlier. The diluted per-share figures include non-recurring items, including restructuring and the acquisition of Cohera Corporation, the company said.
Following Thursday's earnings report, Prudential Securities analyst Tim Getz raised his 12-month price target for PeopleSoft from $28 to $33. Goldman Sachs announced Friday that analyst Thomas Berquist raised his one-year earnings estimate from 50 cents a share to 57 cents a share, according to Reuters. He also maintained his 2002 outlook of 70 cents a share.