aQuantive Beats Wall Street, But Issues Weak Q4 Forecast

Digital marketing services provider aQuantive, Inc. yesterday reported third-quarter revenue of $46.7 million--up from $15.5 million last year--and net income of $3.5 million, or five cents a share, excluding a tax valuation gain. The net income report beat Wall Street estimates by a penny a share.

But aQuantive also issued fourth-quarter revenue forecasts of about $53 million--below analysts' average estimates, which ranged closer to $57 million. The disappointing forecast was attributed to aQuantive's acquisition of interactive agency Razorfish this July. "Its growth margins are lower than our agency and technology operations, and that will take some getting used to," said Brian McAndrews, president and CEO of aQuantive.

He added that the integration of Razorfish is "still in its early stages," and that aQuantive plans to "take advantage of any and all trends that appear from search to rich media to behavioral targeting."

aQuantive shares fell 3.66 percent to $8.16 on Thursday.

advertisement

advertisement

Next story loading loading..