Why Active Network Shares Jumped

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 Active Network (NYSE: ACTV  ) have jumped today by upwards of 30% after the company reported strong earnings and hinted at a possible acquisition.

So what: Revenue in the second quarter added up to $132.4 million, easily beating the Street's $130.9 million forecast. Profitability also beat expectations, with non-GAAP earnings per share of $0.08 topping the consensus estimate of $0.06 per share in adjusted profit. Guidance came in below expectations, but investors were pleased to hear that the company is exploring strategic transactions.

Now what: Active Network said it has received interest from outside parties ranging from investments in the company to an outright acquisition. The board has formed a committee to evaluate strategic alternatives, and there is nothing more to officially report quite yet. The company will evaluate its options, including continuing upon its current strategy. Active Network will not disclose developments until the evaluation process is complete, and has tapped Citigroup as a financial advisor.

Interested in more info on Active Network? Add it to your watchlist by clicking here.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2576417, ~/Articles/ArticleHandler.aspx, 10/21/2014 6:07:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement