Why Tucows Inc. Stock Jumped 12% Today
Shares of network service provider Tucows (NASDAQ: TCX) jumped as much as 12.2% higher on Wednesday, driven by Tuesday night's second-quarter earnings report.
The report was actually not a home run. Revenues of $84.2 million exceeded Wall Street's consensus targets but GAAP (generally accepted accounting principles) earnings per share came in at $0.50, well below the $0.57 analyst consensus.
The Street targets were easily shrugged off, since they are based on estimates by just two analyst firms and the lightly followed company doesn't issue financial guidance figures. More to the point, sales rose 78% year over year thanks to the recently closed buyout of domain-name registrar Enom. Earnings jumped 28% higher, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) profits rose by 50%, and operating cash flows more than tripled.
Source: Fool.com
