Why Shares of Opera Surged Today

What happened

Shares of Opera (NASDAQ: OPRA) jumped on Thursday after the web browser developer reported its third-quarter results. The company beat analyst estimates for revenue and earnings by wide margins, sending the stock up 18.6% by 11:05 a.m. EST.

So what

Opera reported third-quarter revenue of $93.7 million, up 119% year over year and $16.1 million above the average analyst estimate. Search revenue grew 13% to $21.5 million; advertising revenue grew 17% to $18.3 million; and retail revenue more than doubled to $6.0 million. Revenue from fintech was $39.9 million, tripling from the second quarter.

A rising stock chart

Image source: Getty Images.

Non-GAAP (adjusted) earnings per share came in at $0.27, up from $0.11 in the prior-year period. GAAP EPS was $0.12, beating analyst expectations by $0.10.

Opera CFO Frode Jacobsen said:

"Our third quarter revenue growth was driven by strong results in both advertising and search revenues and more than a tripling of microlending revenue versus the second quarter, driven by rapid scaling in India and continued success in Kenya.

Now what

For the fourth quarter, Opera expects revenue between $95 million and $105 million, up 89% to 109% year over year. The company raised its full-year outlook, which now calls for revenue between $300 million and $310 million. The previous guidance called for revenue between $270 million and $290 million.

Including Thursday's rally, the small-cap stock is now up about 107% since the beginning of the year.

10 stocks we like better than Opera Ltd
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Opera Ltd wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of June 1, 2019


Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More