Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of QuinStreet Rocketed Higher Today

By Timothy Green - Feb 1, 2018 at 1:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The marketing tech company had a blockbuster quarter.

What happened

Shares of QuinStreet (QNST 3.68%) jumped on Thursday following the marketing technology company's fiscal second-quarter report. Both revenue and earnings came in above analyst expectations, and the company boosted its outlook for fiscal 2018. QuinStreet stock was up about 35% at 12:45 p.m. EST.

So what

QuinStreet reported second-quarter revenue of $87.5 million, up 33% year over year and $12.3 million above the average analyst estimate. "Momentum in our business continues to be propelled by the roll-out and execution of the product and media strategies developed over the past few years, and by clients shifting more spending to digital media and performance marketing," said QuinStreet CEO Doug Valenti.

A rising stock chart.

Image source: Getty Images.

Non-GAAP earnings per share came in at $0.07, $0.06 better than analysts were expecting. QuinStreet also swung to a profit on a GAAP basis, producing GAAP EPS of $0.04. That's up from a loss of $0.17 per share in the prior-year period.

QuinStreet also increased its adjusted earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA was $6.6 million during the second quarter, up from a loss in the prior-year period.

Now what

On top of beating analyst estimates, QuinStreet increased its guidance for the full fiscal year. The company now expects to grow revenue by about 20% and to produce an adjusted EBITDA margin of 8%. QuinStreet had previously guided for revenue growth of between 10% and 15%.

With a massive revenue beat and a big jump in profits, investors have plenty of reasons to push up the stock.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

QuinStreet, Inc. Stock Quote
QuinStreet, Inc.
QNST
$10.43 (3.68%) $0.37

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.