InfoSpace shares surge after search engine operator hikes revenue and earnings forecasts
By APThursday, January 7, 2010
InfoSpace shares surge as outlook improves
BELLEVUE, Wash. — Shares of InfoSpace Inc. surged Thursday after the company lifted its fourth-quarter revenue and profit forecasts.
The stock jumped $2.38, or 25 percent, to $11.90 in afternoon trading after earlier hitting a 52-week high of $12.16.
InfoSpace, which provides online services to Web sites that offer search functions, said volume from existing customers has grown even as it adds new accounts.
The company said late Wednesday it expects revenue of between $69 million and $70 million, which would be an increase of 88 percent to 90 percent year-over-year. That compares with a previous forecast of $57 million to $60 million.
Analysts polled by Thomson Reuters were looking for $58.5 million, on average.
The company now projects earnings before interest, taxes, depreciation and amortization, or EBITDA, of $6.3 million to $7.5 million, which would reverse last year’s loss of $6.8 million. It had previous estimated EBITDA of $3.4 million to $4.4 million.
