ValueClick Earnings: Exceeds Wall Street Expectations

Rising costs hurt ValueClick Inc. (NASDAQ:VCLK) in the third quarter as profit dropped from a year earlier. ValueClick offers a suite of products and services that enable marketers to advertise and sell their products through online marketing channels such as display advertising, lead generation marketing, email marketing, and search marketing.

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ValueClick Inc. Earnings Cheat Sheet

Results: Net income for ValueClick Inc. fell to $23.5 million (31 cents per share) vs. $37.9 million (47 cents per share) a year earlier. This is a decline of 37.9% from the year-earlier quarter.

Revenue: Rose 25.8% to $160.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ValueClick Inc. reported adjusted net income of 39 cents per share. By that measure, the company beat the mean estimate of 25 cents per share. Analysts were expecting revenue of $157.8 million.

Quoting Management: “We delivered another strong quarter of financial results, while further integrating our core businesses to enhance the long-term growth profile of the Company,” said James R. Zarley, chief executive officer of ValueClick. “Our integration initiatives — including the launch of new products that leverage expertise and technology across the organization — are rapidly transforming ValueClick into the ‘go-to’ provider of digital marketing services for large advertisers.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 19.8% from the year earlier, while the figure increased 27.9% in the first quarter, 39.5% in the fourth quarter of the last fiscal year and 4.8% in the third quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by 2 cents in the first quarter, and by 6 cents in the fourth quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 42 cents per share, up from 41 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $1.14 per to share to $1.18.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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