AOL Earnings: Here’s Why Investors are Not Excited Now

AOL, Inc. (NYSE:AOL) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.67%.

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AOL, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 45.45% to $0.32 in the quarter versus EPS of $0.22 in the year-earlier quarter.

Revenue: Rose 1.68% to $538.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AOL, Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company missed the mean analyst estimate of $0.35. It beat the average revenue estimate of $537.15 million.

Quoting Management: “Growth continues at AOL,” said Tim Armstrong, Chairman and CEO. “AOL’s strategy of being the first scaled media and technology company is clearly represented in our results today, and we will continue to aggressively drive the company toward near-and long-term growth.”

Key Stats (on next page)…

Revenue decreased 10.21% from $599.5 million in the previous quarter. EPS decreased 21.95% from $0.41 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.26 to a profit $0.32. For the current year, the average estimate has moved up from a profit of $1.46 to a profit of $1.61 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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