Demand Media Earnings: Everything You Must Know Now

Demand Media Inc (NYSE:DMD) 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.

Demand Media Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.11% to $0.10 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Rose 8.64% to $101.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Demand Media Inc reported adjusted EPS income of $0.10 per share. By that measure, the company beat the mean analyst estimate of $0.09. It beat the average revenue estimate of $96.33 million.

Quoting Management: “Demand Media accelerated its content commerce strategy in Q2 with the acquisition of e-commerce marketplace Society6, complementing our content platform as well as our other commerce initiatives like Creativebug, eHow Now and Stronger,” said Richard Rosenblatt, Chairman and CEO of Demand Media. “In addition to leveraging our strong Content & Media platform to create new integrated content and commerce offerings, we remain focused on creating the best user experience on our Owned & Operated sites. Our new gTLD initiative gained momentum with 22 of our applications passing initial evaluation by ICANN, and we continue to be excited about the planned launch of our Domain Services business as an independent publicly traded company late this year or early next year.”

Key Stats (on next page)…

Revenue increased 0.48% from $100.62 million in the previous quarter. EPS increased 11.11% from $0.09 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 $0.11 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $0.42 to a profit of $0.39 over the last ninety days.

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