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Why Control4 Shares Soared Today

What happened

Shares of Control4 (NASDAQ: CTRL) soared today, up by 19% as of 11:10 a.m. EDT, after the company reported third-quarter earnings. The bottom line came in well ahead of expectations.

So what

Revenue in the third quarter came in at a record $64.7 million, which yielded non-GAAP net income of $9.6 million, or $0.35 per share. Analysts were expecting an adjusted profit of just $0.26 per share. On a GAAP basis, earnings per share was $0.19.

Image source: Getty Images.

The smart home automation company finished the quarter with cash and net investments of $71.7 million.

Now what

We continue to execute on our strategy to enhance and deliver industry-leading connected-home solutions through our expert channel. Worldwide we are seeing positive reception by our dealers and end-customers for our new products released this September across our Control4, Pakedge and Triad brands.

CEO Martin Plaehn made the above comments, continuing:  "Our recent business performance aligns with the positive opportunities we see for our products, dealers, and partners in delivering fantastic connected-experiences to homeowners, families, and businesses."

In terms of guidance, sales in the fourth quarter should be in the range of $66.3 million to .3 million, with non-GAAP earnings per share of $0.33 to $0.37. Revenue for the full year 2017 is expected to be $242.5 million to $244.5 million, with non-GAAP earnings per share of $1.13 to $1.16.

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Evan Niu, CFA, has no position in any of the stocks mentioned. The Motley Fool owns shares of Control4. The Motley Fool has a disclosure policy.