LogMein Beats Estimates, but Shares Hammered on Outlook

Andrew Klips |

LogMein Beats Estimates, but Shares Hammered on OutlookShares of LogMein Inc. (LOGM) advanced by 3 percent to $23.66 during regular trading hours, but are taking a hit in extended trading after the cloud and mobile service provider delivered revenue in line with Wall Street expectations for the fourth quarter, but missed on its guidance for the first quarter.

The Woburn, Massachusetts-based company said that during the fourth quarter total revenue climbed to $37.0 million, a 14 percent increase from $32.3 million in the year prior quarter.  Including a tax benefit associated with the reversal of a valuation allowance related to certain deferred tax assets, non-GAAP net income for the quarter was $6.0, or 24 cents per share, up from 14 cents per share in the fourth quarter of 2011.

Both figures topped Wall Street expectations of earnings per share of 18 cents on revenue of $36.7 million.

"In the fourth quarter, a record number of net new premium subscribers and strong growth in our newer cloud services helped us deliver revenue and earnings per share that exceeded our guidance," said Michael Simon, president and CEO of LogMeIn.

For all of 2012, revenue increased to $138.8 million, up 16 percent from $119.5 million in 2011.  Non-GAAP net income for 2012, which exlcludes $14.8 million in stock compensation and other items, was $18.4 million, or 72 cents per share, as compared to $17.3 million, or 69 cents per diluted share, reported in fiscal year 2011.

LogMein also said that its board has approved at $35 million stock buy-back program. The company probably would have walked away with a good day if that was the end of the report.

However, looking ahead at the first quarter this year, LogMein said that it expects revenue in the range of $36 million to $36.5 million and earnings per share between 9 and 10 cents.  For the complete year 2013, the company guided revenue of $154 million to $157 million and earnings per share of 43 to 49 cents.

Wall Street analysts were expecting’s full year outlook to be earnings per share to be 81 cents per share on revenue or $164 million.  For the first quarter, outlook also fell short of 18 cents per share in earnings and revenue of $38.2 million.

Shares of LOGM have taken a 20 percent nosedive in after-hours trading since the release, down to $18.44 per share.

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Companies

Symbol Name Price Change % Volume
LOGM LogMein Inc. 99.05 -2.55 -2.51 353,448
RLJE RLJ Entertainment Inc. 1.63 0.04 2.52 16,285

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