Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Blucora Shares Bounced Higher

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 Blucora (NASDAQ: BCOR  )  skyrocketed more than 20% Wednesday after the Internet services specialist easily beat estimates with its third-quarter earnings report.

So what: Quarterly revenue came in at $124.1 million, which translated to an adjusted net income of $0.30 per diluted share. Meanwhile, analysts were only looking for adjusted earnings of $0.16 per share on $95.85 million in sales.

In addition, Blucora stated it expects fourth-quarter revenue to be between $156 million and $164 million, with adjusted earnings between $0.34 and $39 per share. Analysts, by contrast, were modeling Q4 adjusted earnings of just $0.15 per share on sales of $98.45 million.

Now what: Blucora CEO Bill Ruckelshaus weighed in:

Our businesses performed well in the third quarter. InfoSpace is executing through changes in the search marketplace and TaxACT is readying for the coming tax season. We were also thrilled to add Monoprice to our Company in the third quarter.

Any way you slice it, Blucora's beat was solid. And though shares may look relatively expensive looking backward, trading at nearly 37 times last year's earnings, the stock looks much more reasonable on a forward basis of around 11.7 times next year's estimates. If all goes as planned, and Blucora can maintain its momentum going forward, I think patient long-term investors could still stand to be rewarded.

Got iPad?
Apple's newest iPad Mini with Retina display might be hard to come by this quarter, given all the reports of supply constraints. Well, we're going to be sure to get a few -- and give them away! That's right: For the first time ever, The Motley Fool is hosting a contest where you can win a free iPad Mini with Retina display. All you have to do is tell us why you love The Motley Fool by clicking here! We'll pick the three most Foolish submissions to receive a free iPad Mini with Retina display.

See full terms and conditions by clicking here

Read/Post Comments (0) | Recommend This Article (1)

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.

Compare Brokers

Fool Disclosure

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: 2715733, ~/Articles/ArticleHandler.aspx, 9/26/2016 4:52:10 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
BCOR $10.85 Down -0.05 -0.46%
Blucora CAPS Rating: **
AAPL $112.88 Up +0.17 +0.15%
Apple CAPS Rating: ****