Verity flies past 1Q estimates

Verity topped analysts' estimates in its first quarter Thursday, raking in $7.2 million, or 20 cents a share, on sales of $31.3 million.

First Call Corp. consensus expected it to earn 14 cents a share in the quarter.

Verity (Nasdaq: VRTY) shares closed off 1/8 to 42 1/2 ahead of the earnings report.

The $31.3 million in sales marks a 58 percent improvement from the year-ago quarter when it earned $3.2 million, or 10 cents a share, on sales of $19.8 million.

"For the third consecutive year, Verity has achieved record revenues and record net income in the first quarter of its fiscal year, which has historically been our weakest quarter," said CEO Gary Sbona in a prepared release. "Verity's pipeline continues to be robust, and we are committed to continuing our program of investing internally and in those partnering programs which we believe will enhance our prospects for continued success throughout this fiscal year and beyond."

Last quarter, Verity topped the Street estimate, earning $11.6 million, or 32 cents a share, on sales of $30.4 million.

Verity shares moved up to a 52-week high of 63 3/4 in March before falling to a low of 23 in April.

Analysts expect Verity to earn 72 cents a share in the fiscal year.

Six of the seven analysts tracking the stock rate it either a "buy" or "strong buy."