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What: Shares of Rentrak (NASDAQ:RENT) were on the right track today, finishing up 15% after a strong quarterly earnings report.
So what: The viewership-measurement service said revenue jumped 31% to $29.5 million, better than estimates, as sales in its TV Essentials category grew 74% to $7.2 million. Rentrak also posted a much smaller loss than expected at $0.05 a share, versus expectations of $0.14. CEO Bill Livek said, "We are highly confident that our strong leadership position in precisely measuring movies will Rentrak to continue being a high-growth company."
Now what: Livek added, "We believe we are in the early stage of very substantial revenue growth." Rentrak seems to be carving out a unique niche for itself by providing entertainment companies with info on how well a film did in specific cities and other up-to-date results. While the company is still posting losses, it is certainly headed for profitability as its performance was much better than a year ago, when it lost $1.56 a share. I'd say is Rentrak is one to keep your eye on.
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