United Online Earnings: Here’s Why Investors are Not Happy Now

United Online, Inc. (NASDAQ:UNTD) 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 down 8.24%.

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United Online, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 23.81% to $0.16 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Rose 2.11% to $247.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: United Online, Inc. reported adjusted EPS income of $0.16 per share. By that measure, the company missed the mean analyst estimate of $0.16. It beat the average revenue estimate of $243.42 million.

Quoting Management: “Today, FTD Companies, Inc. filed an initial registration statement on Form 10 with the SEC in connection with United Online’s previously announced plan to spin off the FTD business,” said Mark R. Goldston, Chairman, President and Chief Executive Officer. “We continue to be on track to complete FTD’s tax-free spin off as an independent, publicly-traded company by the end of the third quarter of 2013.”

Key Stats (on next page)…

Revenue increased 12.98% from $218.98 million in the previous quarter. EPS increased 14.29% from $0.14 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 $0.19 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $0.62 to a profit of $0.55 over the last ninety days.

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