Demand Media posts 3Q profit, stock up after-hours
Internet company Demand Media Inc., whose websites include eHow.com and Livestrong.com, on Monday posted a third-quarter profit as revenue growth outpaced expenses.
The company earned $3.2 million, or 4 cents per share, in the July-September period. That's up from a loss of $4.1 million, or 5 cents per share in the same period a year earlier.
Adjusted earnings were 11 cents per share in the latest quarter, a penny above Wall Street's expectations.
Revenue grew 20 percent to $98.1 million from $81.5 million. After subtracting commissions paid to Demand Media's advertising partners, revenue grew 19 percent to $92.8 million from $78.1 million. Analysts, on average, were expecting revenue of $91.5 million on that basis, according to a poll by FactSet.
Operating costs grew 10 percent in the latest quarter, to $93.6 million from $84.8 million.
For the current quarter, Demand Media is forecasting total revenue of $101.5 million to $103.5 million. It expects revenue without ad commissions in the range of $95.5 million to $97.5 million. Analysts are expecting $95.4 million.
The company expects adjusted earnings of 10 cents to 11 cents per share. Analysts are expecting 11 cents.
Shares rose 36 cents, or 4 percent, to $9.10 in after-hours trading Monday following the release of the earnings report. The stock had closed up 50 cents, or 6.1 percent, at $8.74 in regular trading.