AOL Earnings: Surprises Street with a Swing Up
AOL Inc. (NYSE:AOL) reported its results for the third quarter. AOL is a global web services company whose business consists of online content, products, and services that it offers to consumers, publishers, and advertisers.
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AOL Inc. Earnings Cheat Sheet
Results: Reported a profit of $20.8 million (22 cents per diluted share) in the quarter. AOL Inc. had a net loss of $2.6 million or a loss 2 cents per share in the year-earlier quarter.
Revenue: Remained constant at $531.7 million.
Actual vs. Wall St. Expectations: AOL Inc. beat the mean analyst estimate of 17 cents per share. It beat the average revenue estimate of $518.7 million.
Quoting Management: “We just reported the best relative revenue performance in seven years and the second consecutive quarter of year-over-year profit growth, exceeding our expectations,” said Tim Armstrong, Chairman and CEO. “We have positioned AOL for growth in 2013 and beyond with consumer and advertiser demand growing for our premium content and innovative products, video, services and ad formats.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by 9 cents in the second quarter, by 11 cents in the first quarter, and by 18 cents in the fourth quarter of the last fiscal year.
Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the fourth quarter is now 36 cents per share, down from 37 cents. For the fiscal year, the average estimate has moved down from $11.36 a share to $11.23 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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