JUPM Sell-Off May Create Opportunity For Some

The selling in shares of JupiterMedia Corp (Nasdaq: JUPM) today (-20%) after muted Q4 results and guidance appears overdone (Currently at $14.79). We would look for a potential bounce here.

After the close, Jupitermedia reported Q4 earnings of $0.16 per share, 1 cent better than estimates on revenues of $21 million, versus the consensus of $20.2 million. The company said it sees Q1 EPS of $0.14, versus the consensus of $0.14, on revenue of $19.2-$19.7 million, versus the consensus of $20.15 million (I guess the Q1 rev guidance is what the stink is all about). Full year guidance looks solid. The company said it sees FY05 EPS of $0.73-$0.75, versus the consensus of $0.64, and revenue of $108-$111 million, versus the consensus of $85.9 million.

If the 2005 guidance of $0.73-$0.75, which some say may be conservative, holds true than the stock is trading at about 20x those numbers. This from a company that reported a 38% year-over-year increase in quarterly revenue and 150% year-over-year increase in quarterly net income.

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