j2 Global Communications Earnings: Here’s Why Investors are Excited Now

j2 Global Communications, Inc. (NASDAQ:JCOM) 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 14%.

j2 Global Communications, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.70 in the quarter versus EPS of $0.64 in the year-earlier quarter.

Revenue: Rose 19.9% to $102 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: j2 Global Communications, Inc. reported adjusted EPS income of $0.70 per share. By that measure, the company beat the mean analyst estimate of $0.62. It beat the average revenue estimate of $91.88 million.

Quoting Management: “I am proud of our accomplishments during 2012 and enthusiastic about the prospects for our business going forward,” said Hemi Zucker, CEO of j2 Global. “We grew our cloud services business by more than 9% and decreased our cancel rate to the lowest in the Company’s history, underscoring the value we deliver to our customers. We continue to pursue larger acquisitions for our cloud business. During 2012 we also established our digital media business with the acquisition of Ziff Davis and in 2013 have grown that business with our purchase of IGN, positioning us for additional acquisitions in the digital media space as well.

Key Stats (on next page)…

Revenue increased 9.38% from $93.25 million in the previous quarter. EPS increased 7.69% from $0.65 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 $0.64 and has not changed. For the current year, the average estimate has moved up from a profit of $2.60 to a profit of $2.62 over the last ninety days.

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