Record High 4Q for j2 Global - Analyst Blog
February 14 2013 - 3:20AM
Zacks
Yesterday, after
the closing bell, ,j2 Global Inc. (JCOM) reported
excellent fourth-quarter 2012 financial results, with record high
quarterly revenue, earnings per share, EBITDA, and churn rate.
Management seems more confident about 2013 as it has provided a
strong financial outlook.
Additionally, the board of
directors of j2 Global has increased its quarterly dividend by 3.3%
sequentially from 22.5 cents per share to 23.25 cents per share,
maintaining its streak of dividend increases for six consecutive
quarters. The new dividend rate implies a 10.7% increase compared
with the first dividend paid by j2 Global in September 2011.
Further, the board has extended its one-year 5 million share
repurchase program set to expire on Feb 20, 2013, by one more
year.
Quarterly GAAP net income came in
at $30.2 million or 65 cents per share compared with $29.8 million
or 62 cents per share in the year-ago quarter. Fourth-quarter
adjusted earnings per share of 66 cents were well above the Zacks
Consensus Estimate of 58 cents. Quarterly, total revenue was
approximately $102 million, up 19.9% year over year, easily beating
the Zacks Consensus Estimate of $90 million.
j2 Global posted quarterly gross
margin of 81.7% compared with 82.8% in the year-ago quarter.
Operating expenses in the reported quarter were $41.1 million
compared with $31.9 million in the prior-year quarter. Quarterly
operating margin was 41.4% compared with 45.2% in the comparable
quarter last year. Churn rate, in the fourth quarter of 2012, was
at a record low of 2.2%.
In the fourth quarter of 2012, j2
Global generated $46.4 million of cash from operations compared
with $41.5 million in the year-ago quarter. Free cash flow, in the
reported quarter was $45.2 million compared with $40.1 million in
the prior-year quarter. At the end of fiscal 2012, j2 Global had
around $343.6 million in cash & marketable securities on its
balance sheet compared with $221 million at the end of 2011. At the
end of fiscal 2012, the company had $245.2 million of debt and the
debt-to-capitalization ratio was 0.29.
Financial
Outlook
For fiscal 2013, management expects
total revenue in the range of $500 - $525 million, while non-GAAP
EPS is expected to be within the range of $2.65 - $2.85. Non-GAAP
effective tax rate is estimated in the range of 25 - 27%.
Other Stocks to
Consider
j2 Global currently has a Zacks
Rank #3 (Hold). Besides j2 Global, other stocks in the
Internet/Application software industry that are currently
performing well include Open Text Corp. (OTEX),
Commtouch Software Ltd. (CTCH) and
Constant Contact Inc. (CTCT). While Open Text
currently has a Zacks Rank #2 (Buy), both Commtouch and Constant
Contact have a Zacks Rank #3 (Hold).
COMMTOUCH SOFTW (CTCH): Free Stock Analysis Report
CONSTANT CONTAC (CTCT): Free Stock Analysis Report
J2 GLOBAL INC (JCOM): Free Stock Analysis Report
OPEN TEXT CORP (OTEX): Free Stock Analysis Report
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