Idearc Beats Estimates, RHD Rises Too
Idearc beat analysts’ Q1 earnings estimates. Here’s the top-line
:
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter 2008 were $359 million, up 1.4 percent compared to the same period in 2007. On an adjusted pro forma basis, first-quarter EBITDA was $367 million, a decrease of 3.2 percent compared to the same period in 2007. Adjusted pro forma EBITDA margins reflected a slight increase at 47.7 percent in the first quarter 2008, compared to 47.0 percent in the same period in 2007.
Net income was $111 million (an increase of 7.8 percent versus the same period in 2007), or 76 cents per diluted share, for the first quarter 2008. On an adjusted pro forma basis, first-quarter net income was $116 million (a decrease of 2.5 percent versus the same period in 2007), or 79 cents per diluted share.
Free cash flow for the period was $193 million based on cash from operating activities of $202 million, less capital expenditures of $9 million.
Multi-product advertising sales for the first quarter declined 6.2 percent compared to 2007.
Idearc gained 44%, while competitor RH Donnelley gained almost 30% on the news.
May 6, 2008 at 9:05 pm
C’mon, Greg, inquiring minds need to know: what’s the upshot? Lots of “decreases” and “declines”–one blog even used the word “anemic” to describe online ad sales growth–yet shares are up…what?!..44%?! I’m agog, notwithstanding the fact Idearc has managed to throw enough dead-weight overboard to make its bottom line “appear” more attractive. Are investors whistling past the grave yard here? Some context, please.
May 6, 2008 at 11:21 pm
On Wall Street it’s all about expectations :). Investors are relieved.
The real visibility on the outlook for the industry will come when some of the macro-economic issues clear up.