United Online, Inc.

United Online, Inc. (UNTD - Snapshot Report) watched its shares spike on a stellar first quarter. The Growth and Income pick also offers momentum, outperforming the market by more than 20% over the past 3 months.

Company Description

United Online is an internet company that provides floral services through its FTD segment on www.ftd.com. The company also operates various social networking websites, including the popular www.classmates.com. United Online’s communications segment includes www.netzero.com and www.juno.com.

The company also provides advertising solutions to marketers through a variety of targeting technologies, website sponsorships and website integrations.

United Online is headquartered in Woodland Hills, CA and operates through a global network of locations in the U.S., Canada, the U.K., Germany, and India.

Upbeat Estimates and a Rising Share Price

After delivering a strong first quarter, UNTD shares jumped higher and continued to maintain the higher level relatively well. During the past 3 months, the stock soared past the major averages by more than 20%.

Analysts have been revising estimated to the upside. Current full-year earnings forecasts of $1.07 were increased from $1.00 over the past 2 months. For the second quarter, projections of 27cents were upped from 26 cents over the past 2 months.

Solid Results

In early May, United Online posted first-quarter earnings of 35 cents per share, beating the consensus estimate by 46% and coming in ahead of the year-prior total. Revenue surged 116% year-over-year.

Management noted that despite challenging macro environment, results were robust fueled by strength in the classmates media and communications segments.

Robust Income and a Strong ROE

The company also recently declared a quarterly dividend of 10 cents per share, which translates into a healthy, industry-leading yield of 7%. The dividend was paid out on May 29.

United Online’s return on equity (ROE) of 18% hovers high above the industry average of 4%.