ValueClick Shares Decrease In Q2
ValueClick is reporting good news and bad news from Q2. Unfortunately for shareholders however, the bad news is outweighing the good news. Monday, the company reported that shares have dropped about 23.5% due to a $10 million loss in their promotional lead generation business, despite the fact that there have been gains in behavioral targeting, display advertising, affiliate marketing and comparison shopping businesses.
Second-quarter earnings rose from $14.4 million to $17.6 million which translates from 14 cents to 17 cents a share, yet the estimated consensus analysis was projected at 18 cents a share. The gross profit for the quarter however was up 13% from last year, coming in at $99.6 million.
The new prediction of sales has been brought down from $655-$665 million to $645-$660 for 2007. The company also announced the completion of their acquisition of MeziMedia which is hopefully going to contribute to their search engine and search optimization abilities.
By the end of the day Monday, the stock had done slightly better, but still closed at 21.01 which put it down 19.22%.
The decrease in market price has actually had analysts increasing the ratings of the company and claim that the firm is in a much better position for buyout. ValueClick CEO Tom Vadnais said, “We will soon be the only independent ad-serving company of size.” They have been approached by potential buyers interested in the company for their services which could compete with the Google/DoubleClick merger.
James Zarley, executive chairman explained that the company is going to be cutting $7 million in cost from their lead generation business by downsizing staff and consolidating technology.
Article Sponsor
More News
Reader Comments.
No comments yet
Leave a Comment
Features
- Media Plan ’08: Look Out of the Window October 10th 2008
- TV Advertising’s Future: A Long Paddle Upstream October 9th 2008
- Conversion Mastery: How Professionals Get Top Conversions October 9th 2008
- Out With the Old, in With the NEW October 8th 2008
- Decision 2008, The Internet Changed Everything October 7th 2008
Latest News
- Eyealike Unveils Image/Video Recognition Ad Solution October 14th 2008
- Omniture Snaps Up Mercado Assets for $6.5M October 14th 2008
- Pixsy, Sonic From Distribution Partnership October 14th 2008
- Google, Yahoo Talk Search Deal With Justice Dept. October 14th 2008
- Hiring Round Up: HealthCentral, Break Media, NetShelter October 10th 2008
- Microhoo: Back From the Dead? October 10th 2008
- Nielsen Online Expands to China October 10th 2008
- Mobile Gaming Firms Eye Nokia, Apple Boost in 2009 October 10th 2008
Spotlight
HipCricket: SMS Is Still the Wave of the FutureADOTAS EXCLUSIVE — HipCricket, a mobile marketing company, has been changing the way advertisers think about reaching their audiences since [...] more...
Reader Favorites
Classifieds
Most Commented
- Can 314 Ad Networks Really Thrive? (8)
- Obama’s VP Pick Inauspicious for Net Neutrality (7)
- Facebook’s $100 Million Virtual Economy (2)
- Boomers Are Slutty Shoppers (2)
- NBC Loses Out on Huge Online Ad Opportunity for Olympics (2)
- Advertising GOLDMINE: Online News Sites? (2)
- Social Media and Agencies: Tools for Success (2)
- Marketing Secrets of an Online “Lurker” (2)
