Why J2 Global Inc. Shares Popped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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  (NASDAQ: JCOM  ) are holding on to a 6% gain this afternoon after beginning the trading day with a 10% pop. Investors in the cloud services company had reason for cheer after J2 reported better than expected earnings last night and also guided its top and bottom lines above Wall Street's expectations for 2014.

So what: J2 reported $138 million in revenue (a 35% year-over-year gain) for its fourth quarter, which missed the analyst consensus of $139.6 million. However, adjusted earnings of $0.91 per share blew past the $0.77 consensus, allowing the company to boost its dividend by 13% to $0.2625 per share. J2 also issued guidance for 2014, which anticipates between $580 million and $600 million in revenue and between $3.23 and $3.48 in EPS. Both numbers trounced Wall Street's expectations -- analysts had modeled $548.2 million on the top line and just $2.96 in EPS.

Now what: The upper end of J2's revenue guidance represents a 15% upside over 2013's full-year result of $521 million, which is far less growth than the 40% improvement the company posted last year to its top line over 2012. However, the midpoint of J2's EPS guidance is a mere 4% higher than its adjusted full-year EPS of $3.24 for 2013. The company still boasts a pretty solid dividend yield of more than 2%, but with barely any profit growth ahead, it could be nearing fully valued status at a P/E of 20.

Want more news and updates? Add J2 Global to your Watchlist now.

Don't settle for slow growth...
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

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.

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: 2840203, ~/Articles/ArticleHandler.aspx, 9/1/2015 12:37:07 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...

Alex Planes

Alex Planes specializes in the deep analysis of tech, energy, and retail companies, with a particular focus on the ways new or proposed technologies can (and will) shape the future. He is also a dedicated student of financial and business history, often drawing on major events from the past to help readers better understand what's happening today and what might happen tomorrow.

Connect with Alex on LinkedIn or Twitter for more news and insight:

View Alex Planes's profile on LinkedIn

Today's Market

updated Moments ago Sponsored by:
DOW 16,182.62 -345.41 -2.09%
S&P 500 1,928.17 -44.01 -2.23%
NASD 4,692.36 -84.15 -1.76%

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

9/1/2015 12:21 PM
JCOM $67.36 Down -2.23 -3.20%
j2 Global Communic… CAPS Rating: ****