LookSmart Soars on Guidance

Updated from 8:49 a.m. EST

LookSmart(LOOK Quote) shares surged more than 10% Thursday after the Internet search operator raised first-quarter guidance.

LookSmart now expects revenue to be $21 million to $23 million, up from its previous forecast of $16 million to $18 million. That's well above analysts' consensus estimate of about $17 million.

The provider of Internet search solutions expects its GAAP first-quarter loss to narrow to $10 million to $12 million, including restructuring charges totaling $4 million to $5 million. Previously, the company forecast a loss of $12 million to $14 million, including restructuring charges of about $5 million to $6 million.

LookSmart's GAAP net income for the fourth quarter was $1.6 million, or a penny a share, vs. a consensus forecast of 2 cents a share. Analysts are expecting the company to post a loss of 10 cents a share in the first quarter.

Recently, shares were up 20 cents, or 11.5%, to $1.94.