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j2 Global (JCOM) Q4 Earnings and Revenues Beat Estimates
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Los Angeles, CA-based j2 Global, Inc.’s fourth-quarter 2016 earnings (on an adjusted basis) of $1.47 per share (including stock-based compensation expenses) beat the Zacks Consensus Estimate by 13 cents. Also, earnings increased surged more than 100% on a year-over-year basis. The results were aided by higher revenues.
Quarterly revenues came in at $251.8 million, up 22.9% year over year. The top line also surpassed the Zacks Consensus Estimate of $243.4 million. The impressive quarterly performance on both fronts pleased investors, which resulted in the stock appreciating in after-market trading on Feb 9.
Segment-wise, total Cloud Service revenues grew 6% to $141.8 million in the reported quarter. Digital Media revenues came in at $108.8 million, up 55.7%. IP Licensing revenues increased $0.1 million to $1.2 million in the final quarter of 2016.
j2 Global posted quarterly operating expenses of $143.4 million in the quarter under review, up 22.4% from the year-ago quarter. Quarterly adjusted EBITDA (earnings before interest and other expenses ) climbed 16.4% year over year to $116.5 million.
j2 Global exited 2016 with approximately $124 million in cash and cash equivalents compared with $255.5 million at the end of 2015. The company completed six acquisitions in the final quarter of 2016, shelling out $508.2 million for the purpose. The company continues to put in efforts to boost its performance despite increasing competition from peers like Nice Ltd.(NICE - Free Report) , Atlassian Corporation Plc (TEAM - Free Report) , and Box, Inc. (BOX - Free Report) .
Long-term debt at the end of 2016 was $601.74 million compared with $592 million at the end of 2015. Free cash flow at the end of 2016 also increased 10.1% year over year to $82.7 million. The company’s existing five-million (one year) buyback program was originally scheduled to end on Feb 20, 2017. Additionally, the company announced that the plan has been extended by one more year.
Price Performance
Shares of j2 Global have outperformed the Zacks categorized Internet-Software industry over the past three months. Shares of the company have increased 17.9% in the last three months, while the industry fell almost 1% in the same period.
The strong earnings report provides a further shot in the arm to the internet and cloud services company.
Outlook
The Zacks Rank# 4 (Sell) company expects earnings (on an adjusted basis) in the band of $5.60 to $6.00 per share for full-year 2017. The top line is projected in the range of $1.13 billion to $1.17 billion. The Zacks Consensus Estimate currently hints at earnings of $5.17 on revenues of $1.05 billion for 2017.
In a shareholder friendly move, j2 Global’s board of directors approved a 2.8% increase in its quarterly dividend. The company will now pay a dividend of 36.5 cents per share, which marks the 22nd successive quarterly dividend hike. The payment will be made on Mar 9, to shareholders on record as of Feb 22, 2017.
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j2 Global (JCOM) Q4 Earnings and Revenues Beat Estimates
Los Angeles, CA-based j2 Global, Inc.’s fourth-quarter 2016 earnings (on an adjusted basis) of $1.47 per share (including stock-based compensation expenses) beat the Zacks Consensus Estimate by 13 cents. Also, earnings increased surged more than 100% on a year-over-year basis. The results were aided by higher revenues.
Quarterly revenues came in at $251.8 million, up 22.9% year over year. The top line also surpassed the Zacks Consensus Estimate of $243.4 million. The impressive quarterly performance on both fronts pleased investors, which resulted in the stock appreciating in after-market trading on Feb 9.
Segment-wise, total Cloud Service revenues grew 6% to $141.8 million in the reported quarter. Digital Media revenues came in at $108.8 million, up 55.7%. IP Licensing revenues increased $0.1 million to $1.2 million in the final quarter of 2016.
j2 Global posted quarterly operating expenses of $143.4 million in the quarter under review, up 22.4% from the year-ago quarter. Quarterly adjusted EBITDA (earnings before interest and other expenses ) climbed 16.4% year over year to $116.5 million.
j2 Global exited 2016 with approximately $124 million in cash and cash equivalents compared with $255.5 million at the end of 2015. The company completed six acquisitions in the final quarter of 2016, shelling out $508.2 million for the purpose. The company continues to put in efforts to boost its performance despite increasing competition from peers like Nice Ltd.(NICE - Free Report) , Atlassian Corporation Plc (TEAM - Free Report) , and Box, Inc. (BOX - Free Report) .
Long-term debt at the end of 2016 was $601.74 million compared with $592 million at the end of 2015. Free cash flow at the end of 2016 also increased 10.1% year over year to $82.7 million. The company’s existing five-million (one year) buyback program was originally scheduled to end on Feb 20, 2017. Additionally, the company announced that the plan has been extended by one more year.
Price Performance
Shares of j2 Global have outperformed the Zacks categorized Internet-Software industry over the past three months. Shares of the company have increased 17.9% in the last three months, while the industry fell almost 1% in the same period.
The strong earnings report provides a further shot in the arm to the internet and cloud services company.
Outlook
The Zacks Rank# 4 (Sell) company expects earnings (on an adjusted basis) in the band of $5.60 to $6.00 per share for full-year 2017. The top line is projected in the range of $1.13 billion to $1.17 billion. The Zacks Consensus Estimate currently hints at earnings of $5.17 on revenues of $1.05 billion for 2017.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dividend Increased
In a shareholder friendly move, j2 Global’s board of directors approved a 2.8% increase in its quarterly dividend. The company will now pay a dividend of 36.5 cents per share, which marks the 22nd successive quarterly dividend hike. The payment will be made on Mar 9, to shareholders on record as of Feb 22, 2017.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>