Why OpenTable's Shares Soared
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 restaurant reservation website operator OpenTable (NAS: OPEN) were plating up big gains for investors today, rising as much as 21% in intraday trading after the company reported second-quarter results.
So what: There was a lot of good news for OpenTable investors this quarter. Total seated diners jumped 27% from last year to 30.3 million, while the company expanded the number of restaurants where its software is installed by 11%. On the top line, revenue increased 15% year over year to $40 million. Adjusted profit per share climbed 27% to $0.42. The company's sales topped analysts' estimates by a hair, while earnings per share topped expectations by $0.05.
Now what: The company expects that the good times will continue to roll and bumped up its full-year outlook. Management now sees adjusted earnings per share of $1.54 to $1.66, up from the previous forecast of $1.49 to $1.64. At the midpoint, the new view is ahead of the $1.57 analysts were expecting.
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The article Why OpenTable's Shares Soared originally appeared on Fool.com.The Motley Fool owns shares of OpenTable. Motley Fool newsletter services have recommended buying shares of OpenTable. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferhas no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.