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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