Shares of United Online Inc. rose Wednesday after the consumer Internet and media services company said its first-quarter revenue and adjusted earnings beat analysts' views.
United Online shares rose 87 cents, or 8.3 percent, to $11.32. In the past year, the stock has traded between $9.55 and $17.97.
Late Tuesday, United Online said it earned $13 million, or 19 cents per share, roughly even with the year-ago quarter.
On an adjusted basis, the company earned 31 cents per share.
United's revenue declined to $121.8 million from $130 million.
Analysts polled by Thomson Financial expected an adjusted profit of 24 cents per share on $118.8 million in revenue.
United Online said revenue in its Classmates Media business _ which includes the Classmates.com and MyPoints Web sites _ rose to $51.9 million from $42.4 million, helped by the addition of 322,000 pay accounts during the quarter.
United Online's communications revenue, meanwhile, declined to $69.9 million from $129.9 million. The unit includes Internet access and e-mail services through NetZero and Juno. Pay accounts in this unit declined by a net 107,000 in the quarter.
For the second quarter, the company expects revenue of $117 million to $121 million; analysts anticipate $119.3 million.
United Online raised its operating income expectations, saying it now expects $81.2 million to $86.2 million for the year, compared with an earlier estimate for $74.7 million to $80.7 million. The company still expects revenue to decline in 2008.
In a client note, Jefferies & Co. analyst Youssef Squali kept his "Buy" rating and $15 price target for the stock.
The analyst said the company's Classmates Media business "continued to show solid growth," though its increase in paid subscribers was offset by weakness in the communications business.
Terms & Conditions
RSS Headlines
Fool UK