BANGALORE, Oct 23 (Reuters) - Shares of business software provider Compuware Corp CPWR.O hit a new 52-week high on Friday, a day after it posted a profit that handily beat Street expectations, driven by a surge in software license fees and lower expenses.
The company’s automotive segment was seeing a sustainable return in demand, while the healthcare segment was enjoying increasing interest, Rafferty Capital Markets analyst Kirk Materne said in a note to clients.
The company’s Covisint unit’s business was complimented by the acquisition of Gomez Inc earlier this month, and allowed Compuware access to the faster growing areas of the application performance management market, Materne added, keeping his “buy” rating on the company’s stock.
Shares of Compuware, which makes computer programs that help large companies run data centers, rose as high as 26 percent, before giving up some of those gains to trade up $1.16 at $8.27 in late morning trade on Nasdaq.
A 27 percent decrease in second-quarter operating expenses, helped the company post a 50 percent rise in earnings per share, while analysts were expecting profit to be flat. [ID:nWNAB3096]
Detroit-based Compuware, which competes with BMC Software BMC.N, CA CA.O, IBM (IBM.N) and HP (HPQ.N), said software license fees, excluding divested products, soared 40 percent to $50.1 million in the quarter. (Reporting by Sudipto Ganguly in Bangalore; editing by Savio D’Souza)