AOL Earnings: Here’s Why Investors are Happy Now

AOL, Inc. (NYSE:AOL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.26%.

AOL, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 96.56% to $0.35 in the quarter versus EPS of $10.17 in the year-earlier quarter.

Revenue: Rose 1.92% to $541.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AOL, Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company beat the mean analyst estimate of $0.32. It beat the average revenue estimate of $539.66 million.

Quoting Management: “AOL takes a major step forward today with another quarter of growth and our agreement to acquire the Adap.tv video marketplace platform that will make AOL a clear global leader in the most important growth segment in our industry – online video,” said Tim Armstrong, AOL Chairman and CEO. “AOL continued to get leaner during Q2 while growing consumer traffic, growing all advertising revenue lines, and improving our subscription trends.”

Key Stats (on next page)…

Revenue increased 0.56% from $538.3 million in the previous quarter. EPS increased 9.37% from $0.32 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 profit of $0.36 and has not changed. For the current year, the average estimate has moved down from a profit of $1.50 to a profit of $1.46 over the last ninety days.

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

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