AOL Earnings Cheat Sheet: Beats Expectations, Yet These Revenues Dipped

AOL Inc. (NYSE:AOL) reported net income above Wall Street’s expectations for the first quarter. AOL is a global web services company whose business consists of online content, products, and services that it offers to consumers, publishers, and advertisers.

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AOL Earnings Cheat Sheet for the First Quarter

Results: Net income for AOL Inc. rose to $21.1 million (22 cents per share) vs. $4.7 million (4 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year-earlier quarter.

Revenue: Fell 4% to $529.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AOL Inc. beat the mean analyst estimate of 8 cents per share. Analysts were expecting revenue of $526.5 million.

Quoting Management: “AOL is a much stronger company today than a year ago and began 2012 by growing advertising revenue, lowering expenses and improving Adjusted OIBDA trends,” said Tim Armstrong, Chairman and CEO. “In 2012 and beyond we are simultaneously focused on the continued successful execution of our strategy and on creating and unlocking value for our shareholders.”

Key Stats:

Revenue has fallen for the last four quarters. Revenue declined 6% to $576.8 million in the fourth quarter of the last fiscal year. The figure fell 5.6% in the third quarter of the last fiscal year from the year earlier and dropped 7.2% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 35 cents versus a mean estimate of net income of 17 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is 6 cents per share, up from 5 cents ninety days ago. The average estimate for the fiscal year is 49 cents per share, falling from 51 cents thirty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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