Quantifying the effectiveness of an advertising campaign can be tricky business. Regarding Web efforts along that line, there is an outfit in Orem, Utah that can put you in touch with reality.
Omniture (NASDAQ: OMTR) provides Internet analytical services to corporate customers. The company hosts an on-demand subscription service, enabling clients to understand the efficiency of marketing initiatives by storing and analyzing information generated through their Web sites. The firm also provides a range of professional services that complement its online offerings. These include implementation, best practices, consulting, customer support and user training. Omniture has some 2,500 customers, including Countrywide Financial (NYSE: CFC), eBay (NASDAQ: EBAY), General Motors (NYSE: GM), Hewlett-Packard (NYSE: HPQ), Microsoft (NASDAQ: MSFT), Oracle (NASDAQ: ORCL) and Wal-Mart (NYSE: WMT).
The company pleased investors late last month, when it announced Q2 EPS of three cents and revenues of $33.5 million. Analysts had been looking for a penny and $32.7 million. The CEO noted that the firm added a record number of new customers (300) in the quarter. Management also guided Q3 EPS to 4-5 cents (2 cent consensus), Q3 revenues to $36.1-$37.1 million ($36.3M consensus), FY07 EPS to 16-18 cents (9 cent consensus) and FY07 revenues to $141-$142 million ($139.3M consensus).
The news kept OMTR shares cycling through a positive three month trading channel. The price is currently consolidating at the base of that channel, where oversold Stochastic and MACD technical parameters suggest the potential for a rise back toward the top. Correspondence of the stock's 30-day moving average to the base of the channel backs the rebound notion.
Brokers recommend the issue with four "strong buys", four "buys" and nine "holds". Analysts see a 138% growth rate, through the next year. The OMTR Sales Growth rate (77.85%) and EPS Growth rate (-0.12 to 0.03 yr/yr) compare favorably with industry, sector and S&P 500 averages.
Institutional investors hold about 57% of the outstanding shares. Over the past 52 weeks, the stock has traded between $6.23 and $27.97. A stop-loss of $21.10 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.
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