AOL Earnings: Here’s Why the Stock is Rocketing Higher 6% Now

AOL, Inc. (NYSE:AOL) delivered a profit and met 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 6%.

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AOL, Inc. Earnings Cheat Sheet

Results: Net income increased 56.58% to $35.7 million (41 cents per diluted share) in the quarter versus a net gain of $22.8 million in the year-earlier quarter.

Revenue: Rose 3.94% to $599.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AOL, Inc. reported adjusted net income of 41 cents per share. By that measure, the company met the mean analyst estimate of $0.41. It beat the average revenue estimate of $573.71 million.

Quoting Management: “AOL returned to growth and generated significant value for shareholders in 2012,” said Tim Armstrong, Chairman and CEO. “AOL has strong momentum entering 2013 and is positioned to continue on our growth path by executing our strategy to build the next generation media and technology company.”

Key Stats (on next page)…

Revenue increased 12.75% from $531.7 million in the previous quarter. Net income increased 71.63% from $20.8 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.38 to a profit $0.37. For the current year, the average estimate has moved down from a profit of $11.19 to a profit of $11.17 over the last ninety days.

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