Xoom Profit Tops Street, But Stock Tumbles On Weak Outlook - Update

(RTTNews) - Online money transfer company Xoom Corp. (XOOM), Tuesday reported a swing to profit in the fourth quarter, on higher revenues, with the results topping Wall Street estimates.

Moving forward, the company expects to incur a loss for the first quarter, with the guidance falling way short of analysts' estimates. Investors were dismayed with the announcement, sending Xoom shares plummeting over 9 percent in after-hours trade on the Nasdaq.

San Francisco, California-based Xoom posted fourth-quarter net income of $1.2 million or $0.03 per share, compared with a net loss of $1.5 million or $0.29 per share last year.

Excluding items, adjusted earnings for the quarter were $0.06 per share, compared with a loss of $0.15 per share a year ago.

On average, six analysts polled by Thomson Reuters expected a loss of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the fourth quarter climbed to $32.1 million from $22.2 million in the prior year, and topped analysts' expectations of $31.23 million.

For the first quarter, Xoom expects a net loss of $0.13 to $0.11 per share, adjusted loss of $0.08 to $0.05 per share and revenues of $33 million to $34 million. Analysts currently expect earnings of $0.07 per share on revenue of $34.16 million.

For fiscal year 2014, Xoom expects a net loss of $0.20 to $0.12 per share, adjusted earnings of $0.03 to $0.10 per share and revenues of $155 million to $160 million. Analysts currently expect earnings of $0.37 per share on revenues of $152.68 million for the year.

In other news, Xoom acquired BlueKite LTD, a technology company that develops applications to improve the way people pay their bills. Xoom acquired BlueKite for about $15 million in cash and equity.

Xoom stock closed Tuesday at $28.13, up $1.28 or 4.77%, on a volume of 687 thousand shares. In after hours, the stock dropped $2.64 or 9.38% at $25.49.