Exodus Beats Estimates, but Stock Retreats - TheStreet

Exodus Communications (EXDS) hit analysts' third-quarter earnings and revenue estimates Thursday, but its shares fell in after-hours trading.

The Web-hosting firm reported a loss, excluding the amortization of goodwill and intangible assets, of $60.6 million, or 14 cents per share. That loss wasn't as wide as the 18-cent loss expected by Wall Street, and it beat even the most optimistic of the 35 sell-side analyst forecasts considered by

First Call/Thomson Financial

. The corresponding loss a year earlier was 8 cents per share.

Revenue for the quarter roughly matched estimates, amounting to $229.6 million, up 28% from the second quarter and 238% above year-ago levels.

In its earnings release, Exodus said it expects to report fourth-quarter revenue of between $270 million and $280 million. The company also expects its EBITDA margin (earnings before interest, taxes, depreciation and amortization divided by revenue) to rise to 11%-13% in the fourth quarter from 9% in the third.

Next year, the company expects to post revenue of about $1.8 billion -- roughly 120% over this year's expected total -- and EBITDA margins of 19% to 22%.

Ahead of the earnings release, the stock rose $4.44 to close at $38.06. After hours, before the scheduled start of the company's conference call with investors, it had fallen to $33.19, erasing the day's gains.