Web.com Group Earnings: Here’s Why Investors are Not Happy Now

Web.com Group, Inc. (NASDAQ:WWWW) 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 down 1.01%.

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Web.com Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 37.14% to $0.48 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 39.98% to $128.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Web.com Group, Inc. reported adjusted EPS income of $0.48 per share. By that measure, the company beat the mean analyst estimate of $0.45. It beat the average revenue estimate of $127.71 million.

Quoting Management: “Web.com delivered a strong performance to start 2013, with first quarter revenue and profitability exceeding the high end of our guidance,” said David Brown, Chairman and CEO of Web.com. “The successful expansion of our average revenue per user and 3 million plus subscriber base is improving the long-term growth profile of Web.com. We also remain focused on maintaining our strong margins and looking for opportunities to further enhance profitability, such as our recent debt re-financings that are expected to drive annualized interest savings of more than $18 million.”

Key Stats (on next page)…

Revenue increased 14.96% from $111.43 million in the previous quarter. EPS increased 6.67% from $0.45 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.47 to a profit $0.48. For the current year, the average estimate has moved up from a profit of $1.96 to a profit of $1.99 over the last ninety days.

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