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.

Acme Packet

Shares of Acme Packet ( APKT) fell in the extended session after the provider of networking software and equipment reported below-consensus quarterly results.

The Bedford, Mass.-based company posted non-GAAP earnings of $18.3 million, or 26 cents a share, on revenue of $83 million, falling short of the average estimate of analysts polled by Thomson Reuters for a profit of 28 cents a share on revenue of $85.2 million.

The stock was last quoted at $27.10, down 12.3%, on volume of 2.3 million, according to Nasdaq.com.

The numbers were doubly disappointing because Acme Packet missed the lowered revenue estimate it provided on Jan. 3 when it gave a forecast for non-GAAP earnings of 26 to 28 cents a share on revenue of $84 million to $86 million.

At that time, the company attributed the weakness in its business to "uncertainty in the North American service provider market."

Based on Thursday's close at $30.89, the shares have lost more than 56% in the past year, scraping a 52-week low of $25.20 on Jan. 4.

Other stocks moving in late trades included Wynn Resorts ( WYNN), which dipped 1.2% to $116.80 on volume of more than 450,000 after the casino operator's fourth-quarter revenue came in slightly below Wall Street's consensus view; Trimble Navigation ( TRMB), which gained 10% to $53 on volume of more than 70,000 after the GPS technology company reported fourth-quarter earnings of 54 cents a share on revenue of $435.2 million, ahead of analyst expectations for a profit of 48 cents a share on revenue of $419.1 million; and Genworth Financial ( GNW), which rose 6.2% to $8.54 on volume of more than 170,000 after the company reported net income of $107 million, or 22 cents a share, in its fiscal fourth quarter.

-- Written by Michael Baron in New York.

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