AskJeeves Shrinks in Google's Long Shadow
The search engine operator matched Wall Street's fourth-quarter consensus and issued 2005 guidance that generally matched expectations. It also laid out first-quarter targets that eerily duplicated the Thomson First Call consensus. But the company's failure to blow out estimates the way its big Mountain View, Calif., rival did Tuesday sent its shares down 94 cents to $26.
For the fourth quarter ended Dec. 31, Ask Jeeves reported net income from continuing operations of $17.1 million, or 25 cents per share, up from 13 cents per share in the fourth quarter of 2003.
Excluding multiple items such as amortization of intangibles, stock-based compensation and restructuring costs, the company reported net income of 35 cents per share, up from 14 cents a year earlier and beating the First Call estimate by 3 cents.Revenue -- 69% of which, in the first three quarters of 2004, was derived from ads sold by Google -- amounted to $86.1 million, short of the analyst consensus of $87 million and matching the company's Oct. 27 guidance. The company reported $31.8 million in revenue in the last quarter of 2003. Looking ahead, Ask Jeeves forecast adjusted EPS of 34 cents for the first quarter of 2005 on revenue of $94 million, exactly matching the First Call numbers going into Thursday's release. Full-year guidance is for revenue in the range of $380 million to $395 million, compared to the current $382 million expectation. Adjusted EPS for the year, says Ask Jeeves, will come in the range of $1.30 to $1.45 per share. Analysts have been forecasting 2005 EPS of $1.39.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV