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Digital River, Acme Packet: After-Hours Trading (Update 1)

Updated from 5:12 p.m. ET to include latest share prices, information on Wynn Resorts, Trimble Navigation, and Genworth Financial.

NEW YORK (TheStreet) -- Shares of Digital River (DRIV) surged in late trades on Thursday after the e-commerce software company handily beat Wall Street expectations for its fiscal fourth quarter.

The Eden Prairie, Minn.-based company reported non-GAAP earnings of $17.2 million, or 45 cents a share, on revenue of $112 million, easily topping the average estimate of analysts polled by Thomson Reuters for earnings of 33 cents a share in the December-ended period on revenue of $104.2 million.

The company's first-quarter outlook looks a bit light though. Digital River forecast non-GAAP earnings of 27 to 30 cents a share for the three months ending March on revenue ranging from $99 million to $101 million. The current average analysts' view is for a profit of 33 cents a share in the quarter on revenue of $104.4 million.



For the full year, it sees non-GAAP earnings of $1.20 to $1.28 a share on revenue of $402 million to $409 million. Wall Street's expectations are for a profit of $1.21 a share on revenue of $420.1 million.

The stock was last quoted at$18.10, up 8.1%, on volume of nearly 150,000, according to Nasdaq.com. Based on Thursday's regular-session close at $16.74, the shares are down 50% in the past year.

The story's been better since the calendar turned with Digital River's stock gaining nearly 9% year-to-date, bouncing off a 52-week low of $13.53 set on Dec. 19. At current levels, the share are trading at a forward price-to-earnings multiple of 13.8X.

Wall Street was skeptical ahead of the report with 9 of the 15 analysts covering the stock at either hold (7) or underperform (2), although the 12-month median price target of $21.75 is fairly bullish, implying potential upside of 30% to Thursday's close.

Digital River said it repurchased nearly $30 million worth of its stock during the quarter, which contributed to the beat. It bought back roughly 1.9 million common shares at an average price of $15.41 each as part of a $100 million repurchase authorization announced back in September.

Check out TheStreet's quote page for Digital River for year-to-date share performance, analyst ratings, earnings estimates and much more.

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