J2 Global sees strong second-quarter results, shares jump
(Reuters) - Web-based communication services provider J2 Global Communications Inc's (JCOM.O) preliminary results topped analysts' expectations, sending its shares up as much as 12 percent.
J2 Global's second-quarter numbers contrast with the outlook provided by software peers Informatica Corp (INFA.O) and Qlik Technologies Inc (QLIK.O), which expect the European crisis to weigh on results.
J2 Global expects to report adjusted second-quarter earnings of between 68 cents and 71 cents per share, while analysts were looking for 63 cents a share, according to Thomson Reuters I/B/E/S.
"(J2 Global) experienced strong demand despite the macro environment and general fears around second-quarter guidance for the software group," FBR analyst Daniel Ives wrote in a note to clients.
The company expects second-quarter revenue in the range of $88.8 million to $89.5 million, ahead of the $87.7 million analysts were expecting.
"While we continue to believe 2012 will be a year of investments in the business, the company is doing the right things -- strategically and financially speaking -- to lay the seeds for future growth," Ives said.
The company has been boosting its offerings through acquisitions, including four this year.
The Hollywood, California-based company's shares were up about 10 percent at $28.75 in afternoon trade on the Nasdaq.
(Reporting By Aurindom Mukherjee in Bangalore; Editing by Sreejiraj Eluvangal)