Please ensure Javascript is enabled for purposes of website accessibility

Slumpin' Jupiter

By Rick Munarriz – Updated Nov 14, 2016 at 10:25PM

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

Jupitermedia continues to let down its owners by failing to ride the waves of Internet usage.

It's a good thing that Jupitermedia (NASDAQ:JUPM) is rich in digital photography, because it sure knows how to take shots at its investors. The online media company posted disappointing quarterly results last night.

It's a familiar place for the company, having now missed Wall Street's profit targets in each of the last six quarters. Revenues dipped 1% lower to $34.7 million. Earnings fell from $0.07 per share a year earlier to just $0.02 per share. If you're generous, you can tack on another penny to back out stock-based compensation. It's still a miss, though. Analysts were expecting Jupitermedia to earn $0.04 a share on $36.3 million in revenues.  

There was a slight 2% uptick in the company's bread-and-butter online images business. It now accounts for 79% of total revenues and it explains why niche leader Getty Images (NYSE:GYI) was in talks to acquire the company earlier this year. Those talks broke down in March, if only to prove that potential suitors can be as disillusioned with Jupitermedia as its shareholders.

It's not going to get better. The company's third-quarter profit guidance is a penny below where the pros are perched. If history is any kind of teacher, Jupitermedia will find a way to let Wall Street down again even if comes down to the company's level.

It's a shame because Jupitermedia has a rich portfolio of properties that are just begging to be better exploited in more capable monetizing hands. The company watches over 150 different websites that generate more than 400 million monthly page views. It also manages 150 email newsletters that have been opted into by 20 million readers.

The company's collection of Web industry destinations includes Internet.com, Graphics.com, and the recently acquired MediaBistro.com.

I realize that Jupitermedia isn't the only content-rich network for IT professionals that is currently out of favor. CNET Networks (NASDAQ:CNET) has been trading in the single digits for nearly a year now. Dice (NYSE:DHX) is trading for less than last month's IPO price. However, Jupitermedia is digging its own irrelevant grave by perpetually disappointing investors.

Acquisitions aren't growing the top line, so the company is out to whack its overhead. Jupitermedia expects to improve after-tax cash flows by at least $4 million once its restructuring is complete. That may be the tonic to reverse the cruel trend, but it's just sad to see a promising company trying so hard to make its pennies last longer when it should be thriving during the Internet usage boom.

Other snapshots worth taking a peek at:

CNET is a Rule Breakers stock pick. You don't need to be a shutterbug -- or even a media pro -- to grab a free 30-day trial subscription to the newsletter service.    

Longtime Fool contributor Rick Munarriz isn't photogenic enough to wonder if his likeness is available in royalty-free form. He does not own shares in any of the companies in this story. He is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

None

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

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

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

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.