We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
j2 Global (JCOM) Beats Q4 Earnings and Revenue Estimates
Read MoreHide Full Article
j2 Global, Inc. delivered fourth-quarter 2018 adjusted earnings of $2.11 per share, beating the Zacks Consensus Estimate by 8 cents. The figure grew 17.9% year over year.
Net sales in the quarter were up 9.4% year over year to $346.1 million and beat the Zacks Consensus Estimate of $344 million.
Quarter Details
Revenues from Cloud Services increased marginally from the year-ago quarter to $148.1 million. Digital Media revenues were $198 million, up 16.8% year over year. The company’s total subscription revenues increased 1.4% year over year.
At the end of the quarter, the company had 3,165 cloud services customers. Average monthly revenue per customer increased 1.2% from the year-ago quarter to $15.49.
The company announced two acquisitions in the fourth quarter of 2018. The acquisitions include Ekahau and Castle Connolly.
For 2018, jCom recorded revenues of $1.2 billion compared with $1.11 billion in 2017. Earnings per share increased 12.6% year over year to $6.35.
Adjusted EBITDA was $489.5 million, up 5.7% year over year.
Full-year 2018 net cash provided by operations increased 51.8% year over year to $401.3 million and free cash flow increased from $264.8 million to $344.9 million.
Margins
Adjusted gross margin contracted 170 basis points (bps) on a year-over-year basis to 84%. Cloud Services adjusted gross margin contracted 260 bps while that of Digital Media declined to 36.2% from 48.4% in the year-ago quarter.
While adjusted sales and marketing expenses stayed flat in the reported quarter, research & development and general & administrative expenses increased 27.3% and 17.5%, respectively, year over year.
Adjusted EBITDA margin stayed flat at 44.6%. Cloud Services adjusted EBITDA margin contracted 240 bps from the year-ago quarter. However, Digital Media adjusted EBITDA margin expanded 180 bps.
Adjusted operating margin contracted 70 bps to 41.5%. Cloud Services adjusted operating margin contracted 250 bps while that of Digital Media increased 120 bps.
Balance Sheet and Cash Flow
As of Dec 31, 2018, the company had approximately $293.3 million in cash and investments after using $440 million during the quarter for acquisitions and regular quarterly dividend. Long-term debt stayed flat sequentially at $1.01 billion.
Cash flow from operations was $107.2 million in the reported quarter compared with $89.8 million in the third quarter.
Free cash flow increased 27.2% year over year to $95.8 million.
2019 Guidance
j2 Global expects revenues to be between $1.29 billion and $1.33 billion for 2019. Additionally, the company projects adjusted EBITDA in a band of $520 and $540 million.
Adjusted earnings are now anticipated between $6.65 and $6.95 per share.
The company announced its first open-market share buyback since 2012. Notably, 1.3 million shares are available under the buyback program.
Zacks Rank & Stocks to Consider
j2 Global currently carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Jabil, MeetMe and Twilio is projected to be 12%, 20% and 9%, respectively.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
j2 Global (JCOM) Beats Q4 Earnings and Revenue Estimates
j2 Global, Inc. delivered fourth-quarter 2018 adjusted earnings of $2.11 per share, beating the Zacks Consensus Estimate by 8 cents. The figure grew 17.9% year over year.
Net sales in the quarter were up 9.4% year over year to $346.1 million and beat the Zacks Consensus Estimate of $344 million.
Quarter Details
Revenues from Cloud Services increased marginally from the year-ago quarter to $148.1 million. Digital Media revenues were $198 million, up 16.8% year over year. The company’s total subscription revenues increased 1.4% year over year.
At the end of the quarter, the company had 3,165 cloud services customers. Average monthly revenue per customer increased 1.2% from the year-ago quarter to $15.49.
The company announced two acquisitions in the fourth quarter of 2018. The acquisitions include Ekahau and Castle Connolly.
j2 Global, Inc. Price, Consensus and EPS Surprise
j2 Global, Inc. Price, Consensus and EPS Surprise | j2 Global, Inc. Quote
Full-Year Details
For 2018, jCom recorded revenues of $1.2 billion compared with $1.11 billion in 2017. Earnings per share increased 12.6% year over year to $6.35.
Adjusted EBITDA was $489.5 million, up 5.7% year over year.
Full-year 2018 net cash provided by operations increased 51.8% year over year to $401.3 million and free cash flow increased from $264.8 million to $344.9 million.
Margins
Adjusted gross margin contracted 170 basis points (bps) on a year-over-year basis to 84%. Cloud Services adjusted gross margin contracted 260 bps while that of Digital Media declined to 36.2% from 48.4% in the year-ago quarter.
While adjusted sales and marketing expenses stayed flat in the reported quarter, research & development and general & administrative expenses increased 27.3% and 17.5%, respectively, year over year.
Adjusted EBITDA margin stayed flat at 44.6%. Cloud Services adjusted EBITDA margin contracted 240 bps from the year-ago quarter. However, Digital Media adjusted EBITDA margin expanded 180 bps.
Adjusted operating margin contracted 70 bps to 41.5%. Cloud Services adjusted operating margin contracted 250 bps while that of Digital Media increased 120 bps.
Balance Sheet and Cash Flow
As of Dec 31, 2018, the company had approximately $293.3 million in cash and investments after using $440 million during the quarter for acquisitions and regular quarterly dividend. Long-term debt stayed flat sequentially at $1.01 billion.
Cash flow from operations was $107.2 million in the reported quarter compared with $89.8 million in the third quarter.
Free cash flow increased 27.2% year over year to $95.8 million.
2019 Guidance
j2 Global expects revenues to be between $1.29 billion and $1.33 billion for 2019. Additionally, the company projects adjusted EBITDA in a band of $520 and $540 million.
Adjusted earnings are now anticipated between $6.65 and $6.95 per share.
The company announced its first open-market share buyback since 2012. Notably, 1.3 million shares are available under the buyback program.
Zacks Rank & Stocks to Consider
j2 Global currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector include Jabil, Inc. (JBL - Free Report) , MeetMe, Inc. and Twilio Inc. (TWLO - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for Jabil, MeetMe and Twilio is projected to be 12%, 20% and 9%, respectively.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>