Ziff Davis Posts $1.43/Shr Loss from Continuing Ops in Q2
ZD has more than doubled off its 52-week low of $22.45.
Summary
Ziff Davis reported a $1.43 per share loss from continuing operations in Q2, a significant miss that raises questions about the profitability of its remaining businesses after the $1.2 billion Connectivity sale to Accenture. The company also posted adjusted EPS of $1.03, while Q2 revenue missed estimates due to segment weakness. This follows the Q1 loss from continuing ops and the June 17 deal close, marking the first full quarter of results without the divested unit. The loss suggests the core portfolio is underperforming expectations, and with no guidance provided, uncertainty around the go-forward earnings power is high. The next catalyst will be any commentary on the strategic review and capital allocation plans, including the ongoing buyback program.
At the time of this announcement, ZD was trading at $50.95 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $22.45 to $55.46. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.