New Relic Inc. Up 19.15% To $76.40 After Earnings Beat

New Relic Inc (NEWR) reported better than expected earnings this afternoon for Q3 2023.

Wall Street earnings per share (EPS) projections for New Relic Inc. were at $0.15. The company beat those estimates with an EPS of $0.32. The earnings per share of $0.32 (which represents a -113% EPS surprise) led to the company's profits rising 278% compared to last year when the firm reported an EPS loss of $0.18 per share. The increase in New Relic Inc.'s annual growth rate represents how the business is performing well amid recent economic conditions.

Analyst projections for New Relic Inc. revenue came in at a consensus of $232.7 million. Third-Quarter revenues surpassed estimates for $239.8 million by $7.1 million (3%). The company achieved 18% growth year-over-year compared to the firm's revenue of $203.6 million from the year-ago quarter. The higher earnings growth relative to revenue signals New Relic Inc. has improved its profit margin.

The stock is up 19.15% to $76.40 after the report.

Despite revenues increasing, earnings decreased, signaling a decline in profit margins.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned New Relic Inc. a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 18. Meanwhile, the average Wall Street analyst rated the stock a Buy.

New Relic Inc is a provider of software analytics solutions for organizations to collect, store, and analyze massive amounts of software data in real-time. The firm's flagship New Relic Software Analytics Cloud is made up of a suite of products, a Big Data database, and an open platform. Its solutions include diagnostics, reporting and alerting, transaction monitoring, and performance monitoring capabilities. The firm generates revenue from subscription-based arrangements for software offerings, typically for a year. A majority of the firm's revenue is generated in the United States, and the rest from Europe, the Middle East, and Africa; the Asia-Pacific; and other regions.