Needham & Company Trims Estimates on AOL (AOL) Pre-Q2 Print

Needham & Company revised estimates on AOL, Inc. (NYSE: AOL) ahead of Q2 results but reiterated a Buy rating and price target of $46.00.

The firm is fine-tuning 2Q13 estimates as follows:

We are lowering our Third Party Networks revenue estimate by 8% to $121mm, based on our channel checks.

We expect our lower revenue projection to be offset in part by lower SG&A expenses in 2Q than we had previously estimated. Based on actual levels reported in 1Q13, we are lowering our SG&A estimate by 10% to $94mm.

We are raising our estimate for taxes, from 45% to 48%, to reflect AOL's tax guidance on the 1Q call.

As a result of these changes, the firm lowered 2Q13 estimates and project that AOL will report the following results:

Revenue of $546mm (up 3% y/y and 2% below our previous estimates);

OIBDA of $101mm (up 7% y/y and no change from our previous estimates);

Reported EPS of $0.31 (down from $10.17 in 2Q12 and $0.01 lower than our previous estimate); and

Operating EPS of $0.43 (up 90% y/y and $0.02 lower than our previous estimate).

For an analyst ratings summary and ratings history on AOL, Inc. click here. For more ratings news on AOL, Inc. click here.

Shares of AOL, Inc. closed at $35.50 yesterday.

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