AOL Inc on Wednesday reported its quarterly profit fell, missing expectations as it sheds businesses and upgrades its advertising operations, sending its stock tumbling 22 percent. The digital and media entertainment company posted first-quarter adjusted earnings per share of 34 cents, falling far short of the average analyst estimate of 45 cents and overshadowing growth in revenue and advertising sales. "The first quarter is weak, and we think the market is overvaluing the quarter, rather than looking at the strategic vision of AOL," said Laura Martin, an analyst with Needham and Co. AOL executives said on a conference call with analysts that the first quarter tended to be soft because of seasonality. Still, AOL said first-quarter revenue rose 8 percent to $583.3 million, topping estimates of $577.7 million, according to Thomson Reuters I/B/E/S. Revenue was boosted in part by a 43 percent surge in ad sales through AOL's automated electronic exchange to $230.8 million, helped in part from the acquisition of video advertising platform Adap.TV.
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