Local.com Shares Up on Improved OutlookWednesday, September 7, 2011
Shares of Irvine-based search engine operator Local.com Corp. rose Wednesday, a day after the company upped its revenue outlook for the second half of the year citing contract modifications.
Investors sent shares up 4.5% in early afternoon New York trading to a market value of about $61 million after Local.com said it expects to see revenue top expectations for the remainder of the year by about $1 million.
Local.com now expects about $21.5 million in revenue for the current quarter and $24 million for the fourth quarter.
The revised outlook still leaves Local.com short of analysts' expectations but move it closer in terms of revene and earnings.
Analysts on average are expecting revenue of $21 million in the current quarter and $26.1 million in the fourth quarter.
The company expects an adjusted net loss of $1.5 million in the current quarter.
It had previously said the loss would be less than $1.9 million.
Analysts are expecting a net loss of about $600,000.
“Our updated guidance reflects the positive impact of the many changes we made in the first half of the year,” said Local.com Chairman and Chief Executive Heath Clarke. “We predicted strong revenue growth in the second half of 2011, and we’re pleased that this is now coming in ahead of our expectations.”
Local.com runs an online search engine that directs users to local businesses, such as “flowers in Irvine.”
Users also get search results that include offers from local businesses, reviews, links to local websites, maps, driving directions and other features.