Shares in PeopleSupport Inc. gained more than 7 percent Tuesday after the company announced strong earnings, a stock buyback and better-than-expected full-year guidance.

PeopleSupport reported second-quarter net income of $3.9 million (16 cents per share), an 11 percent increase from $3.5 million (20 cents) from the same period a year earlier. Earnings per share for the quarter fell as the number of outstanding shares increased to 24 million from 19.3 million from the year-ago period, the company said.

According to a poll by Thomson Financial, Wall Street was looking for 2 cents per share.

Revenue for the Los Angeles-based provider of offshore customer management services was up 13 percent to $34 million, a quarterly record that beat analysts’ expectations of $32 million.

The company also announced a $25 million stock buyback plan. Stock buybacks can help companies increase earnings per share since it decreases the number of outstanding shares.

For the full year, the company said it expects earnings of between 39 cents and 43 cents per share on revenue of $135 million to $138 million.

Wall Street analysts currently expect earnings of 33 cents per share on revenue of $135 million, according to Thomson Financial.

Shares of PeopleSupport closed up 66 cents, or 7.3 percent, but continued to gain, adding another 99 cents, or 10.3 percent, to $10.63 in after-hours trading Tuesday on the Nasdaq.