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j2 Global (JCOM) Q4 Earnings Miss Estimates But Rise Y/Y
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j2 Global, Inc.’s fourth-quarter 2017 earnings (excluding 77 cents from non-recurring items) of $1.79 per share missed the Zacks Consensus Estimate by a couple of cents. However, the bottom line climbed 20.1% on a year-over-year basis on the back of higher revenues.
Quarterly revenues came in at $316.4 million, up 25.6% year over year and ahead of the Zacks Consensus Estimate of $314.5 million. Segment wise, total Cloud Service revenues increased 2.7% year over year to $146.9 million in the reported quarter. Digital Media revenues logged $169.5 million, up 55.8%.
j2 Global’s operating expenses were $194.19 million in the quarter under review, up 35.4% from the same period last year. Quarterly adjusted EBITDA (earnings before interest, tax, depreciation and amortization) rose 21.8% year over year to $141.9 million.
j2 Global exited the fourth quarter of 2017 with approximately $350.95 million in cash and cash equivalents compared with $123.95 million at the end of 2016. Long-term debt during the period was $1 billion compared with $601.75 million at the previous year-end. Also, free cash flow decreased 8.9% year over year to $75.3 million during the quarter under discussion.
The company expects revenues between $1.20 billion and $1.25 billion for 2018. While adjusted earnings per share for the period is anticipated between $5.95 and $6.25. The Zacks Consensus Estimate for current-year earnings is pegged at $6.11 on revenues of $1.19 billion. Additionally, it projects adjusted EBITDA in the band of $480-$505 million for the same time frame. Also, adjusted effective tax rate for the year is estimated between 23% and 25%.
Dividend Hike & Extension of Share Repurchase Program
The company’s board has raised its quarterly cash dividend by 2.5% to 40.5 cents per share. The dividend will be paid on Mar 9 to shareholders of record as of Feb 22.
Further, the company has extended the existing 5 million share repurchase program by a year. Initially, it was a one-year program with the date of expiry set on Feb 19, 2018. Nearly 1.9 million shares are yet to be bought back under the revised authorization.
Shares of Twitter, COUPA SOFTWARE and AMETEK have gained more than 28%, 16% and 8%, respectively, in the last three months.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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j2 Global (JCOM) Q4 Earnings Miss Estimates But Rise Y/Y
j2 Global, Inc.’s fourth-quarter 2017 earnings (excluding 77 cents from non-recurring items) of $1.79 per share missed the Zacks Consensus Estimate by a couple of cents. However, the bottom line climbed 20.1% on a year-over-year basis on the back of higher revenues.
Quarterly revenues came in at $316.4 million, up 25.6% year over year and ahead of the Zacks Consensus Estimate of $314.5 million. Segment wise, total Cloud Service revenues increased 2.7% year over year to $146.9 million in the reported quarter. Digital Media revenues logged $169.5 million, up 55.8%.
j2 Global’s operating expenses were $194.19 million in the quarter under review, up 35.4% from the same period last year. Quarterly adjusted EBITDA (earnings before interest, tax, depreciation and amortization) rose 21.8% year over year to $141.9 million.
j2 Global exited the fourth quarter of 2017 with approximately $350.95 million in cash and cash equivalents compared with $123.95 million at the end of 2016. Long-term debt during the period was $1 billion compared with $601.75 million at the previous year-end. Also, free cash flow decreased 8.9% year over year to $75.3 million during the quarter under discussion.
j2 Global, Inc. Price, Consensus and EPS Surprise
j2 Global, Inc. Price, Consensus and EPS Surprise | j2 Global, Inc. Quote
2018 Outlook
The company expects revenues between $1.20 billion and $1.25 billion for 2018. While adjusted earnings per share for the period is anticipated between $5.95 and $6.25. The Zacks Consensus Estimate for current-year earnings is pegged at $6.11 on revenues of $1.19 billion. Additionally, it projects adjusted EBITDA in the band of $480-$505 million for the same time frame. Also, adjusted effective tax rate for the year is estimated between 23% and 25%.
Dividend Hike & Extension of Share Repurchase Program
The company’s board has raised its quarterly cash dividend by 2.5% to 40.5 cents per share. The dividend will be paid on Mar 9 to shareholders of record as of Feb 22.
Further, the company has extended the existing 5 million share repurchase program by a year. Initially, it was a one-year program with the date of expiry set on Feb 19, 2018. Nearly 1.9 million shares are yet to be bought back under the revised authorization.
Zacks Rank & Key Picks
j2 Global carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Computer and Technology sector are Twitter, Inc. , COUPA SOFTWARE and AMETEK, Inc. (AME - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Twitter, COUPA SOFTWARE and AMETEK have gained more than 28%, 16% and 8%, respectively, in the last three months.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>