ValueClick Surges on Strong Quarter

The company also lifts fourth-quarter guidance.
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ValueClick

(VCLK)

surged 20% late Thursday after the digital marketing company posted strong earnings and boosted guidance.

For the quarter ended Sept. 30, the Westlake Village, Calif., company earned $7.6 million, or 9 cents a share. That's up from $2 million, or 3 cents a share, a year earlier and 3 cents ahead of the Wall Street analyst estimate.

Revenue jumped to $43.5 million from $22.7 million a year earlier, handily beating the Thomson First Call estimate of $38 million.

"Our better-than-expected third-quarter results demonstrate the continued success of our multichannel approach to serving online advertisers and publishers," said CEO James Zarley. "We are seeing good traction in our media and affiliate marketing core businesses, we are encouraged by the early success of our Pricerunner comparison-shopping site acquisition, and we are well-positioned to execute on our initiatives to continue our growth through 2005."

The company boosted fourth-quarter guidance, calling for earnings of a dime a share on revenue of $47 million. Analysts had expected 9 cents on $42.5 million.

ValueClick's view of 2005 was more mixed, with the company forecasting earnings of 35 cents a share on revenue of $210 million. Analysts had expected earnings of 37 cents on revenue of $208 million.

The results come at the end of an eventful three months for ValueClick. The company's shares plunged in August after it posted a weak second quarter, but began recovering later that month on news of a big buyback and added more momentum after ValueClick guided up in September.

On Thursday, ValueClick shares jumped $2.08 to $11.65.