UPDATE 2-Govt deal powers Tibco earnings, outlook

* Q3 adj EPS $0.23 vs est $0.21

* Q3 rev $229 mln vs est $220 mln

* Sees Q4 adj EPS $0.33-$0.35 vs est $0.35

* Sees Q4 rev $278-$283 mln vs est $277.3 mln

* Shares rise 5 pct (Adds outlook, conference call details, updates shares)

Sept 22 (Reuters) - Tibco Software's results were boosted by a large government deal it booked during the quarter, prompting the business software maker to issue a strong fourth-quarter revenue outlook.

The upbeat outlook sent shares of the Palo-Alto, California-based company up 5 percent to $21.9 after the bell. They closed at $20.97 on Thursday on Nasdaq.

"We are continuing to see demand from the government, banks and retail," founder and Chief Executive Vivek Ranadive said on a conference call with analysts.

Tibco has been pushing ahead of its peers as the demand grows for real-time analysis of huge chunks of data to predict trends, spot problems and help find quick solutions.

" We say with great confidence our EPS will keep increasing at 15-20 percent per year," said Ranadive, who was has a stake in NBA franchise Golden State Warriors.

Earlier this month, rival Progress Software lowered its third-quarter outlook as several financial services customers delayed their decisions to buy its software.

Tibco, which was spun off from Reuters in 1999, expects fourth-quarter adjusted net income of 33-35 cents a share, on revenue of $278-$283 million.

Analysts were expecting earnings of 35 cents a share on revenue of $277.3 million, according to Thomson Reuters I/B/E/S.

Third-quarter net income came in at $23.5 million, or 14 cents a share, compared with $17.4 million, or 10 cents a share, a year ago.

Excluding items, Tibco earned 23 cents a share.

Revenue rose 24 percent to $229 million. License revenue rose 29 percent, helped by the signing of a $18 million government deal, half of which was recognized this quarter. (Reporting by Siddharth Cavale in Bangalore; Editing by Roshni Menon, Saumyadeb Chakrabarty)