Digital River Unleashes a Torrent

Earnings surge, driving the stock higher in postclose action.
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Digital River

(DRIV) - Get Report

soared 13% after posting a strong second-quarter earnings report and raising guidance.

The Eden Prairie, Minn., e-commerce outsourcer earned $10.2 million, or 26 cents a share, up from the year-ago $6.8 million, or 19 cents a share. Excluding taxes and some other costs, latest-quarter earnings were 47 cents a share, 7 cents ahead of the Thomson First Call analyst consensus estimate.

Revenue rose 47% from a year ago to $51 million, beating the $49 million consensus.

"In the second quarter, we exceeded our revenue and earnings expectations," said CEO Joel Ronning. "We continue to execute well on several growth fronts. We are capitalizing on sales prospects in our online network and in international markets. Our strategic marketing services continue to generate incremental revenue streams for our clients and our company."

For the third quarter, Digital River expects to make 48 cents a share on a pro forma basis on revenue of $52.5 million, while Wall Street was expecting 40 cents on $50.5 million. For the year, the company now expects to make $2 a share excluding costs on revenue of $216 million, while the Thomson First Call estimate calls for $1.82 on $210 million.

In late action Wednesday, Digital River rose $4.74 to $40.23.