Why Rentrak Shares Shot Up
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 Rentrak were on the right track today, finishing up 15% after a strong quarterly earnings report.
So what: The viewership-measurement service said revenue jumped 31% to $29.5 million, better than estimates, as sales in its TV Essentials category grew 74% to $7.2 million. Rentrak also posted a much smaller loss than expected at $0.05 a share, versus expectations of $0.14. CEO Bill Livek said, "We are highly confident that our strong leadership position in precisely measuring movies will Rentrak to continue being a high-growth company."
Now what: Livek added, "We believe we are in the early stage of very substantial revenue growth." Rentrak seems to be carving out a unique niche for itself by providing entertainment companies with info on how well a film did in specific cities and other up-to-date results. While the company is still posting losses, it is certainly headed for profitability as its performance was much better than a year ago, when it lost $1.56 a share. I'd say is Rentrak is one to keep your eye on.
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The article Why Rentrak Shares Shot Up originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned, and neither does The Motley Fool. 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.