j2 Global Communications 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 j2 Global Communications (Nasdaq: JCOM  ) rose as much as 22% in early trading after reporting strong results, raising guidance, and initiating a dividend.

So what: Revenue rose 40% year over year to $85.7 million, while adjusted profit improved 41% to $0.65 a share. Analysts were looking for $83.9 million and $0.58, respectively, according to data compiled by Yahoo! Finance.

Now what: But the beat, while great, wasn't the story of this report. Management also raised the lower end of its full-year guidance by 11%, to $2.46 a share, and initiated a $0.20 per share dividend. At current prices, and assuming a regular quarterly payment, that amounts to a 3% yield at current prices. Neither Easy Link (Nasdaq: ESIC  ) nor Open Text (Nasdaq: OTEX  ) -- j2's closest competitors -- paid a dividend as of this writing. Is that enough to entice you to buy at these levels? Why or why not? Weigh in using the comments box below.

Interested in more info on j2 Global Communications?Add it to your watchlist.

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 Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Motley Fool newsletter services have recommended buying shares of and writing puts in Open Text. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.


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