Why j2 Global Jumped
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What: Shares of j2 Global (NAS: JCOM) jumped by as much as 12% after the company announced preliminary earnings for its second quarter.
So what: Second-quarter revenues are expected to be between $88.8 million and $89.5 million, with adjusted earnings per share in the range of $0.68 to $0.71, representing record levels in both top and bottom lines. Even the low end of both figures beat the $87.7 million in sales and $0.63 per share profit that the market was looking for.
Now what: The company paid out about $10 million for its regular quarterly dividend and spent another $20 million repurchasing shares. j2 also announced a proposed $250 million senior unsecured debt offering. It would be a private offering, and j2 would use the funds for "general corporate purposes, which may include acquisitions." The official earnings release will come on Aug. 1, but investors can count on a solid quarter in the bag.
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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.