Shares of Modem Media.Poppe Tyson (Nasdaq: MMPT) shot up 10 3/4, or 27 percent, to 50 1/2 Tuesday after company officials said it will likely double its third quarter revenue.
After market close Monday, the online marketer and corporate website developer said it expects third quarter revenue of more than $21 million, a 90 percent improvement year-over-year and a 30 percent gain sequentially. New clients, international growth and higher spending from current customers boosted revenue, the company said.
Third quarter results will be formally released Oct. 27. First Call's survey of three analysts predicts a profit of 3 cents per share.
Earlier this year, Modem Media said it would not suffer from the loss of its then-largest client, AT&T. Large corporate clients are driving the company's growth, said G.M. O'Connell, chairman and CEO. "It is also this select group of companies that disproportionately drive overall e-business spending," he said.
Modem Media's next target industry is telecommunications. The company earlier Monday announced a contract to design and market the website of British wireless provider Vodafone.
Shares of Modem Media rose 3 1/32 to 39 3/4 in Monday's regular trading, following the Vodafone announcement. Of three Wall Street firms polled by Zack's Investment Research, two recommend Modem Media as a "strong buy" and one has the equivalent of a "moderate buy" rating on the stock.>