ValueClick profit leaps but guidance falls short

ValueClick profit leaps but revenue guidance falls short; shares tumble

• On 6:06 pm EDT, Tuesday October 27, 2009

WESTLAKE VILLAGE, Calif. (AP) -- ValueClick Inc.'s quarterly profit leaped as lower costs helped the online advertising company weather a revenue slide. Revenue guidance was weak, and the stock fell.

The company reported Tuesday that net income in the July-September period was $25 million, or 29 cents per share, versus $2 million, or 2 cents per share, in the year-ago period.

Excluding items, profit was 34 cents per share. Analysts were expecting 14 cents per share, according to a poll by Thomson Reuters.

Sales dropped 12 percent to $130.2 million from $148.1 million, but still edged above analysts' average forecast for $129 million.

The company's operating expenses dropped to just over $68 million from nearly $107 million a year earlier, a key reason for the higher profit.

The company said it expects $128 million to $138 million in fourth-quarter revenue, lower than analysts' average estimate for $142 million. Net income is expected to be 15 cents to 16 cents per share, or 21 cents to 22 cents per share excluding items. Analysts were expecting 17 cents per share.

The stock fell 48 cents, or 3.8 percent, to $12.01 in after-hours trading when the earnings were released. In the regular session, the stock lost 22 cents to close at $12.49.