Active Network Inc Earnings: Here’s Why Investors are Not Excited Now

Active Network Inc (NYSE:ACTV) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 11.89%.

Active Network Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.24 in the quarter versus EPS of $-0.13 in the year-earlier quarter.

Revenue: Rose 23.21% to $93.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Active Network Inc reported adjusted EPS loss of $-0.24 per share. By that measure, the company missed the mean analyst estimate of $-0.11. It missed the average revenue estimate of $95.22 million.

Quoting Management: “In 2012, we achieved the key technology milestones we established at the beginning of the year. Our first Hunting and Fishing customer went live on our ActiveWorks® platform, we made strong progress in transitioning our Endurance customers onto ActiveWorks®, and we delivered on our data center consolidation targets. We continue to drive innovation and adoption of our horizontal ActiveWorks® platform,” commented Executive Chairman of ACTIVE Network, Dave Alberga.

Key Stats (on next page)…

Revenue decreased 14.21% from $109.22 million in the previous quarter. EPS decreased to $-0.24 in the quarter versus EPS of $0.05 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.15 and has not changed. For the current year, the average estimate is a loss of $0.12, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)