ValueClick Inc. Earnings: Beats Analysts’ Estimates

ValueClick Inc. (NASDAQ:VCLK) reported net income above Wall Street’s expectations for the first quarter. 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 Earnings Cheat Sheet for the First Quarter

Results: Net income for ValueClick Inc. rose to $21.6 million (27 cents per share) vs. $16.9 million (21 cents per share) in the same quarter a year earlier. This marks a rise of 27.9% from the year-earlier quarter.

Revenue: Rose 31.2% to $152.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ValueClick Inc. reported adjusted net income of 38 cents per share. By that measure, the company beat the mean estimate of 23 cents per share. It fell short of the average revenue estimate of $157.8 million.

Quoting Management: “Given the success of our efforts to reduce the paid traffic component of our Owned & Operated segment in the past two quarters while improving this segment’s margin profile, we will accelerate this process in the second quarter,” said John Pitstick, chief financial officer of ValueClick. “We expect this will result in a sequential revenue decrease in the O&O segment in the second quarter of approximately 5% compared to Q1, but with continued gross margin improvement.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 29.5%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 41.8% from the year earlier quarter.

The company’s net income has now been on the rise for four quarters in a row. In the fourth quarter of the last fiscal year, net income rose 39.5% while the figure climbed 4.8% in the third quarter of the last fiscal year and 41% in the second quarter of the last fiscal year from the year earlier.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the fourth quarter of the last fiscal year, by 31 cents in the third quarter of the last fiscal year, and by one cent in the second 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 second quarter is 25 cents per share, up from 24 cents ninety days ago. The average estimate for the fiscal year is $1.16 per share, a rise from $1.14 ninety days ago.

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

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