Innotrac to beat Street's expectations
Stock surges on word of better-than-expected profit
cbs.marketwatch.com
By Cecily Fraser, CBS MarketWatch
Last Update: 1:43 PM ET Mar 23, 1999 Also see: NewsWatch
ATLANTA (CBS.MW) -- Investors sent shares of Innotrac screaming higher Tuesday after the company said its first-quarter earnings will be "substantially" better than expected.
Shares of Innotrac (INOC), which provides technology-based marketing support services, shares rose 2 7/8, or 23 percent, to 15 1/16 in recent trading.
The Atlanta-based company said pro forma earnings are now expected to be 33 to 35 cents a share, topping the First Call consensus estimate of a 26-cent profit.
Revenue is expected to exceed $57 million for the first quarter, more than double the $22.6 million in the year-ago period.
The company said good Caller ID volume due to strong promotions helped earnings. Innotrac provides Caller ID equipment and customer service for BellSouth, which accounts for about 85 percent of sales, according to a Hoover's Online profile. Other customers include Pacific Bell, US West, Home Depot and Turner Broadcasting.
"The first two months of the year have been very strong, far exceeding our initial expectations," said Chief Executive Officer Scott Dorfman, who, according to Hoover's, owns 70 percent of the company.
Sales of Caller ID equipment for BellSouth (BLS), Innotrac's largest telecom client, increased significantly, the company said in a press release.
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