FreeMarkets (FMKT) reported a narrower-than-expected second-quarter loss, as the business-to-business electronic auction company saw its revenue grow more than 80% from the previous quarter.
The company reported a loss of 34 cents a share, excluding nonoperating charges, or $12.8 million, in the quarter, compared with a loss of 13 cents a share, or $3.3 million, in the year-earlier quarter.
The 15 analysts surveyed by
First Call/Thomson Financial
had projected a loss of 41 cents a share in the latest quarter. Net revenue surged to $19.4 million for the quarter, 80% better than the previous quarter's $10.8 million, and up 363% from $4.2 million in last year's second quarter. Analysts had been expecting about $13 million to $14 million in net revenue.
The company's auction volume jumped to $2.2 billion for the quarter, above analyst expectations of $1.4 to $1.7 billion. That's up 62% from the previous quarter.
"Our second-quarter results demonstrate the strength and increasing scalability of our business model as well as our ability to execute," Glen T. Meakem, FreeMarkets chairman and CEO, said in a statement. "During the quarter, we grew our market volumes, revenues, gross margins and customer wins above expectations."
After trading down for much of the day, FreeMarkets shares rose 1 1/4, or 2.4%, to close at 53 1/2 ahead of the Pittsburgh-based company's earnings report on Monday. In after-hours trading, the stock fell to 51, according to