UPDATE 1-Corporate Executive shares surge on FY outlook raise
* Raises FY EPS view to $1.20-$1.35 from $1.05-$1.20
* Contract value up 7 pct sequentially
* Shares jump more than 18 pct (Adds analysts comments, details, updates stock movement)
By Tenzin Dekeva
BANGALORE, Aug 3 (Reuters) - Shares of Corporate Executive Board Co EXBD.O jumped more than 18 percent, a day after it raised its 2010 forecast and posted a second-quarter profit above analysts' expectations.
The company's contract value grew organically on a sequential basis for the first time since the third quarter of 2008, Stifel Nicolaus analyst Shlomo Rosenbaum said, adding this could be the reason for the surge in the stock.
Barclays Capital analyst Gary Bisbee raised his price target on the company to $23 from $20 and noted that both sequential organic revenue and contract value had grown during the quarter. [ID:nWNAB2634]
Contract value rose 7 percent sequentially and 2 percent over the same period the previous year to $410.1 million.
The provider of research and analysis services to businesses raised its full-year adjusted profit forecast range by 15 cents to between $1.20 and $1.35 per share.[ID:nASA00LFE]
The company also raised its revenue outlook to a range of $430 million to $440 million, from its previous forecast of between $405 million and $415 million.
Analysts were expecting full-year profit of $1.24 per share, before items, on revenue of $412.2 million, according to Thomson Reuters I/B/E/S.
Corporate Executive said the updated 2010 outlook was due to contribution from Iconoculture, a consumer research and advisory company it bought in May.
Shares of the company were trading up 14 percent at $32.33 in late afternoon trade on Nasdaq. They touched a high of $33.49 earlier in the day. (Reporting by Tenzin Dekeva in Bangalore; Editing by Prem Udayabhanu)