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CheckFree Clearly Above

The e-commerce company beats estimates by 3 cents and raises guidance.
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posted a jump in second-quarter net income Tuesday, surpassing Wall Street's expectations, buoyed by continued strength in its investment services and software-license business.

Georgia-based CheckFree also offered second-quarter and full-year earnings projections above analysts' estimates.

The news sent shares soaring 9.2%, or $4.09, to $48.51 in recent after-hours trading.

The e-commerce company said net income for the quarter ended Dec. 31 rose to $33.8 million, or 36 cents a share compared with $13 million, or 14 cents a share, a year earlier.

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Excluding items, earnings rose to $41 million, or 44 cents a share, compared with $33.7 million, or 36 cents a share, a year earlier, beating Thomson First Call's estimate of 41 cents.

Revenue rose to $215.9 million from $185.8 million in the same quarter last year. Analysts forecast a top line of $212.3 million.

"Strong financial results through the midpoint of the fiscal year put the company on track to exceed its previously announced fiscal year expectations," CheckFree CFO David Mangum said in a statement.

For the third, or next, quarter, CheckFree targets earnings at 36 cents to 38 cents on revenue of $217 million to $222 million, and GAAP earnings in the range of 27 cents to 30 cents.

Wall Street forecast earnings of 33 cents a share and revenue of $203.7 million.

For the full year, the company estimates earnings before items of $1.62 to $1.66 cents a share and GAAP earnings of $1.19 to $1.24.

CheckFree closed the regular session up $1.33 to $44.42.