United Online Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of United Online (Nasdaq: UNTD  ) soared by as much as 19% in intraday trading after reporting better-than-expected third-quarter results.

So what: The former dot-com darling, which like EarthLink (Nasdaq: ELNK  ) and AOL (NYSE: AOL  ) still serves some dial-up Internet accounts, reported $0.25 in adjusted earnings on $193.5 million in revenue. Both results beat analysts' consensus estimates.

Now what: United Online has spent years diversifying through online properties such as Classmates.com. Now, the portfolio appears to be paying off. United Online produced more than $13 million in free cash flow during the quarter, more than enough to pay for its healthy dividend, which yielded 6.5% as of this writing.

Interested in more info on United Online? Add it to your watchlist here.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.


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