NEW YORK (TheStreet) -- Neustar (NSR) stock is gaining by 7.25% to $25 on heavy trading volume on Thursday afternoon, after the company completed its acquisition of MarketShare Partners and provided 2016 revenue guidance.
The Sterling, VA-based information services and analytics company is expecting 2016 revenue of $1.16 billion to $1.2 billion.
Neustar also announced the completion of its acquisition of MarketShare, an analytics technology company for businesses. MarketShare will add at least $90 million to 2016 revenue, the company said.
"By combining MarketShare's analytics software with our authoritative identity framework, we are now positioned to help clients build comprehensive marketing plans to reach customers efficiently and attribute sales to the appropriate marketing spend, both online and offline," Neustar CEO Lisa Hook said in a statement.
So far today, 1.82 million shares of Neustar have traded, versus its 30-day average of about 791,000 shares.
Separately, TheStreet Ratings team rates NEUSTAR INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate NEUSTAR INC (NSR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues slightly increased by 7.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- NEUSTAR INC has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, NEUSTAR INC increased its bottom line by earning $2.77 versus $2.47 in the prior year. This year, the market expects an improvement in earnings ($4.59 versus $2.77).
- Net operating cash flow has remained constant at $85.73 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -11.15%.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to other companies in the IT Services industry and the overall market on the basis of return on equity, NEUSTAR INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- NSR has underperformed the S&P 500 Index, declining 10.98% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full analysis from the report here: NSR