24/7 Sells Off

Shares of 24/7 Real Media(TFSM Quote) sold off late Wednesday after the online advertising company failed to wow Wall Street with its first-quarter earnings and 2006 guidance.

Pro forma operating income more than doubled to $3.6 million, or 7 cents per share, from $1.3 million, or 3 cents, a year earlier, the New York-based company said in a statement. Sales jumped 48% to $42.9 million. The results beat expectations of profit of 6 cents on sales of $41 million. 24/7 had a net loss of $7.5 million, or 16 cents, compared with $400,000, or 1 cent a share, a year earlier. Results were hurt by the expensing of stock options.

The company expects to make 8 cents a share for the second quarter on revenue of between $46 million and $47 million. Analysts were looking for an 8-cent profit on $46.3 million in sales. ...