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24/7 Gains on Guidance

Jonathan Berr

24/7 Real Media (TFSM Quote) rose 8% after the Internet marketing outfit posted a narrower third-quarter loss.

The New York company lost $800,000, or 2 cents a share, down from a loss of $1.7 million, or 4 cents a share, during the year-earlier period. The latest quarter capitalized on the growing popularity of online advertising.

Excluding certain costs, the company said its pro forma operating income was $2.3 million, or 5 cents a share, up from $13,000, or less than a penny a share. On that basis, the company was expected to earn 4 cents a share on sales of $32.8 million, according to Thomson Financial.

"Advertisers are now realizing the power of the Internet," said David Moore, the company's chief executive officer, in an interview. "From our perspective, 2005 has been a breakout year for us and 2006 will be a breakout year for our shareholders."

Revenue in the fourth quarter will be between $36.5 million and $37.5 million, ahead of the consensus estimate of $36.5 million. The company's 6-cent profit projection matches analysts' expectations.

Pro forma earnings per share for the year will be 18 cents, ahead of the 17-cent average estimate of analysts surveyed by Thomson Financial. Sales will be $134.5 million to $135.5 million, ahead of the $132.4 million analysts' estimate.

Shares of 24/7 rose 44 cents late Wednesday to $6.40.