Why Constant Contact Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Constant Contact have popped today by upwards of 19% after the company reported first-quarter earnings.
So what: Revenue in the first quarter totaled $68.2 million, which was only a hair above the consensus estimates for the top line. On the bright side, the online marketer surprised investors with non-GAAP earnings per share of $0.05, which topped the $0.03 per-share loss that the market was expecting. The company also raised its guidance for 2013.
Now what: The increased forecast calls for better profitability on an unchanged sales outlook. Revenue for 2013 should still be in the range of $284 million to $289 million, but non-GAAP earnings per share is expected at $0.14 to $0.17, up from the previous guidance of $0.62 to $0.69 per share. CEO Gail Goodman said the company continues to transition into a multi-product company, and that Constant Contact has seen success converting demand to paying customers.
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The article Why Constant Contact Shares Popped originally appeared on Fool.com.Fool contributor Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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