Shares of Homestore ( HOMS) surged Friday after the company reported a strong second quarter.

The online real estate service earned $3.3 million, or 2 cents a share, in the quarter, compared with a loss of $4.3 million, or 3 cents a share, last year. The latest quarter included a litigation expense of $4.2 million partially offset by a $1.4 million reduction in a previous restructuring charge.

Revenue rose 16% from a year ago to $63.3 million.

Analysts had been expecting a loss of 2 cents a share in the most recent quarter.

"Our past investments in our Realtor.com and Top Producer businesses continue to deliver increasingly positive returns, reinforcing our belief that the investments we are currently making in other areas of the company will create long-term value," the company said in a release.

Homestore was up $1, or 39%, to $3.56 Friday morning.

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