NEW YORK (TheStreet) -- Shares of RetailMeNot Inc (SALE) were spiking, sharply up 21.79% to $20.96 on heavy volume in late morning trading Tuesday, after the online coupon site reported better than expected first quarter earnings results.
The retailer earned 20 cents per share for the first quarter, compared to the 14 cents per share analysts had predicted.
Revenue came in at $60.4 million, also topping analyst forecasts of $58.7 million for the quarter. RetailMeNot had guided for first quarter sales of between $57 million to $60 million.
Looking ahead, the company reiterated its outlook for the year, saying it expects to report revenue of $275 million to $285 million.
For the current quarter, RetailMeNot issued a forecast of between $55 million to $58 million in revenue, lower compared to the $58.9 million in sales analysts are expecting.
The company said it will continue to focus on innovating and investing in highest growth areas such as in-store and mobile.
About 1.6 million shares have exchanged hands as of 10:50 a.m. ET, compared to its average trading volume of about 476,247 shares a day.
The Austin, TX-based company aggregates retailers' digital coupons, posts them on its website and smartphone application, and then collects commissions from retailers based on purchases.
Separately, TheStreet Ratings team rates RETAILMENOT INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate RETAILMENOT INC (SALE) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."