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ValueClick shares fall after 3Q report

Thu, 11/03/2011 - 11:05am
The Associated Press

ValueClick Inc. shares dropped more than 6 percent on Thursday after the online marketing company reported third-quarter profit above Wall Street's expectations, but its revenue and outlook for revenue only met analysts' views.

ValueClick, which connects websites and advertisers, said late Wednesday that it earned $37.9 million, or 47 cents per share, in the quarter that ended Sept. 30. That compares with $36.2 million, or 44 cents per share, in the year-ago quarter.

Analysts polled by FactSet expected 21 cents per share.

The Westlake Village, Calif., company's revenue jumped 27 percent to $136 million, which is what analysts expected.

Revenue in ValueClick's media business rose 58 percent to $52.7 million, helped by contributions from its recent acquisitions of personalized display media company Dotomi and mobile ad network operator Greystripe Inc. Revenue from the company's network of owned and operated websites rose 13 percent to $40.5 million. Revenue from its affiliate marketing business rose 9 percent to $32.5 million.

For the current quarter, ValueClick expects adjusted net income of 39 to 41 cents per share on $173 million to $179 million in revenue.

Analsyts surveyed by FactSet forecast 36 cents per share on $176.2 million in revenue.

In a note to clients, Jefferies analyst Youssef Squali reiterated his "Buy" rating and $20 price target for the stock, calling the quarter mostly in line with Wall Street expectations "despite headwinds in the company's media and affiliate segments."

ValueClick shares fell $1.16, or 6.4 percent, to $16.86 in afternoon trading.

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