United Online Q3 Results Beat Estimates - Update

(RTTNews) - United Online Inc. (UNTD), a provider of consumer products and services over the Internet, Wednesday reported a loss for the third quarter, hit by an impairment charge. Adjusted earnings and revenues topped Wall Street estimates. The stock rose over 5 percent in the extended trade.

Net loss attributable to common stockholders was $47.6 million or $0.51 per share, compared to net income of $5.1 million or $0.06 per share in the same period last year.

The latest results included an estimated $50.2 million goodwill impairment charge due to a material decline in the fair value of the Classmates reporting unit.

Adjusted income was $11.6 million or $0.12 per share, while it totaled $12.5 million or $0.14 per share last year. On average, three analysts polled by Thomson Reuters expected the company to earn $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues declined 2 percent to $174.71 million from $177.75 million last year. Analysts expected revenues of $172.86 million.

Revenue from Products rose to $90.25 million from $87.54 million while Services revenue dropped to $84.46 million from $90.21 million.

FTD revenues rose 2 percent from last year to $118.5 million. United Online said the tax-free spin off of FTD Companies is planned to occur on November 1.

The spin off, planned last year, will lead to two independent companies - FTD that will include the operations of the FTD segment, which includes the namesake FTD and Interflora brands.

The other company will be United Online which will continue to operate the businesses of the company's Content & Media and Communications segments.

Third-quarter Content & Media revenues declined 12 percent to $32.2 million while Communications revenues were 3 percent lower at $24.4 million

Looking ahead to the fourth quarter, the company expects revenues in the range of $58.5 million to $61.5 million.

The stock closed up 1.1 percent on Wednesday at $$8.55 and gained 5.2 percent in the extended trade to $8.99.