TheStreet reports earnings that beat expectations, shares up 36 percent
Financial news company TheStreet.com reported third quarter earnings that beat analyst estimates and an increase in revenue, although the revenue missed Wall Street expectations.
The New York-based company reported net income of $189,869, or 1 cent per share, up from a loss of $1.2 million, or 3 cents per share, in the third quarter of 2016. Revenue was $15.25 million, up slightly from revenue of $15.21 million in the same quarter last year.
Analysts were expecting a loss of 2 cents and revenue of $15.81 million.
“This is the second consecutive quarter that we have had net income,” said CEO David Callaway in a statement. “Our turnaround plan has taken hold. With the confidence of our newest investor, 180 Capital, and finalized contract negotiations with Jim Cramer, we are set for continued growth on the top and bottom line of the business.”
Operating expenses for the third quarter of 2017 were $15.0 million, $1.1 million, or 7 percent less than the $16.1 million in operating expenses incurred in the third quarter last year.
The company also exchanged all shares of its Series B preferred stock held by Technology Crossover Ventures for 6 million shares of common stock and $20 million in cash.
In addition, the company sold 7.1 million shares of common stock to 180 Degree Capital Corp. for $7.8 million, or $1.10 per share. Kevin Rendino, CEO of 180 Capital, joined the board of TheStreet as a result of the transaction.
TheStreet’s shares rose 36 percent, or 34 cents, to $1.28 in Monday morning trading.