Why j2 Global Shares Skyrocketed
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 j2 Global have skyrocketed today by as much as 14% after the company posted record earnings results.
So what: Revenue in the fourth quarter hit a new record of $102 million, which absolutely crushed the $91.9 million that the Street was expecting. Non-GAAP earnings per share of $0.70 was also well ahead of the $0.62 per share consensus estimate. There were numerous other records set too, such as quarterly EBITDA of $52.3 million and a cancel rate of 2.2%.
Now what: CEO Hemi Zucker highlighted that j2 Global's cancel rate hit the lowest level in its history as evidence that the company is successfully delivering its value proposition to customers. The company also continues to pursue larger acquisitions to grow its cloud business and recently purchased IGN, a website for gaming. Guidance for 2013 calls for sales of $500 million to $525 million, with non-GAAP earnings per share of $2.65 to $2.85.
Interested in more info on j2 Global? Add it to your watchlist by clicking here.
A fresh idea for 2013
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.
The article Why j2 Global Shares Skyrocketed 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.