Demand Media Inc. (DMD), the online operator of websites eHow.com and LiveStrong.com, rose the most in more than a year after fourth-quarter adjusted profit topped analysts’ estimates.
Demand Media, based in Santa Monica, California, rose 23 percent to $7.33 at 12:53 p.m. in New York and had climbed as much as 25 percent, the biggest intraday gain since January 2011. The shares had declined 11 percent in 2012 before today.
The company reported profit of 8 cents a share, excluding items, after markets closed yesterday, exceeding the 7-cent average of seven analyst estimates compiled by Bloomberg. Sales of $81.3 million, excluding items, trailed the average estimate of $82.2 million.
Demand Media reported a fourth-quarter net loss of $6.4 million, or 8 cents a share, as revenue rose 15 percent to $84.4 million.
For the current quarter, the company projected profit of 5 cents to 6 cents a share, excluding items, compared with the 5- cent average of nine analysts’ estimates. The company forecast revenue of $78 million to $80 million, excluding items. Analysts estimate $81.6 million.
To contact the editor responsible for this story: Anthony Palazzo at email@example.com