ValueClick’s Quarter Meets Expectations

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Shares of ValueClick rose 10 percent on Thursday, a day after the online advertising company reported a quarterly profit that met expectations. The company also cut its full-year guidance.

Westlake Village-based ValueClick reported net income of $2 million (2 cents per share), compared to $16.8 million (17 cents) a year ago. Revenue fell 2.6 percent to nearly $153 million, better than the $152 million that analysts surveyed by Thomson First Call had expected.

Profits were affected by a stock option tender offer and some tax adjustments. Excluding those, net income would have been 15 cents a share, in line with analyst estimates.

The company said weakness in its comparison shopping and search segment was offset by better-than-expected revenues in its display advertising business.

“While the industry’s growth outlook for the rest of the year is more cautious, we have the experience and management team depth to continue to drive strong margins and free cash flow in this challenging market,” said Chief Executive Tom Vadnais in a statement.

For the full year, the company now expects earnings of 55 cents to 56 cents a share, down from the 69 cents to 71 cents it anticipated in July, with revenue of $633 million to $638 million, down from $655 million to $675 million.

ValueClick said its fourth quarter revenue will take a $6 million hit from foreign exchange movements, as well as from the loss of sales from two non-core units that have been sold.

The company also announced its board had approved a new $100 million stock repurchase plan.

ValueClick shares were up 67 cents to $7.12 in morning trading on the Nasdaq.

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