Markets

j2 Global (JCOM) Earnings & Revenues Miss Estimates in Q3

j2 Global, Inc. 's JCOM third-quarter 2017 earnings (excluding 68 cents from non-recurring items) of $1.34 per share missed the Zacks Consensus Estimate by 2 cents. However, the bottom line increased 7.2% on a year-over-year basis on the back of higher revenues.

Quarterly revenues came in at $273.6 million, up 30.2% year over year. However, the top line fell short of the Zacks Consensus Estimate of $276.1 million. Segment-wise, total Cloud Service revenues inched up 1.7% year over year to $144.6 million in the reported quarter. Digital Media revenues came in at $127.8 million, up 91.3%. IP Licensing revenues were up 9.1% to $1.2 million in the third quarter of 2017.

j2 Global's operating expenses were $168.29 million in the quarter under review, up 51.6% from the same period last year. Quarterly adjusted EBITDA (earnings before interest, tax, depreciation and amortization) rose 16.7% year over year to $111.3 million.

j2 Global exited the third quarter of 2017 with approximately $402.54 million in cash and cash equivalents compared with $123.95 million at the end of 2016. Long-term debt at the same point of time was $999.20 million compared with $601.75 million at the previous year-end. Also, free cash flow increased 6.8% year over year to $56.80 million.

j2 Global, Inc. Price, Consensus and EPS Surprise

j2 Global, Inc. Price, Consensus and EPS Surprise | j2 Global, Inc. Quote

Outlook

The company continues to estimate earnings per share (on an adjusted basis) in the band of $5.60-$6.00 for 2017, unchanged from its preceding guidance. The prediction for revenues is also reiterated at its recently revised guidance of $1.107-$1.147 billion. The Zacks Consensus Estimate currently calls for earnings of $5.70 on revenues of $1.12 billion for 2017.

The company expects non-GAAP effective tax rate for 2017 (exclusive of the release of reserves for uncertain tax positions) in the range of 28-30% (previous guidance: 28.5-30.5%).

Dividend Hiked

In a shareholder-friendly move, j2 Global's board of directors has approved a 2.6% increase in quarterly dividend. The company will now make a payment of 39.5 cents per share, marking the 25 th successive quarterly dividend hike. This payout will be made on Dec 5 to shareholders of record as of Nov 17.

Zacks Rank & Key Picks

j2 Global carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Computer and Technology sector are Twitter, Inc. TWTR , Apptio Inc. APTI and Atlassian Corporation Plc TEAM . While Twitter sports a Zacks Rank #1 (Strong Buy), Apptio and Atlassian carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Shares of Twitter, Apptio and Atlassian have gained more than 6%, 77% and 40%, respectively in the last six months.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

j2 Global, Inc. (JCOM): Free Stock Analysis Report

Atlassian Corporation PLC (TEAM): Free Stock Analysis Report

Twitter, Inc. (TWTR): Free Stock Analysis Report

Apptio Inc. (APTI): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TEAM TWTR JCOM

Other Topics

Earnings Stocks