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Why J2 Global Stock Jumped on Tuesday

By Daniel Sparks – Aug 11, 2020 at 12:21PM

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The internet and information services company just posted record-breaking second-quarter revenue.

What happened

Shares of internet and information services company J2 Global (JCOM 2.95%) jumped on Tuesday, rising as much as 26.5%. As of 11:40 a.m. EDT, however, the stock was up about 16.5%.

The stock's gain follows the company's stronger-than-expected second-quarter results.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Revenue during J2 Global's second quarter was $331 million, up 2.7% from the year-ago period. Analysts, on average, were expecting revenue of $316 million. Adjusted earnings per share of $1.71 for the period was also ahead of a consensus forecast for $1.45. 

"J2's outstanding results in an exceptionally challenging environment demonstrate the strength and quality of our business and the dedication of our employees," J2 Global CEO Vivek Shah said in a statement. "Our adaptability and focus led to record-breaking revenues, Adjusted EBITDA, and free cash flow for the quarter."

Now what

For the full year of 2020, management forecast revenue between $1.38 billion and $1.4 billion. While this was in line with what analysts were expecting, the company's outlook for 2020 adjusted earnings per share between $7.17 and $7.41 was well above a consensus analyst estimate for $6.87.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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