Shares of LogMein (LOGM), a provider of communication and support services, jumped late on Thursday after the firm reported earnings and sales that beat analysts’ expectations for the third quarter as it said that renewal rates returned to ‘historical levels’ in its communications and collaboration business.
Sales rose to $308.9 million during the three months that ended September 30, from $269.3 million a year ago, the Boston-based firm, said in a statement after the market closed on Thursday. That comfortably beat the $303.0 million average analyst estimate compiled by Capital IQ.
In line with higher sales, adjusted earnings per share surged to $1.40 from $1.16 a year earlier, surpassing the normalized market forecast of $1.34 per share.
“LogMeIn had a strong quarter as we saw positive early results from the steps we took to improve the performance of our communications and collaboration business,” Chief Executive Officer Bill Wagner said in the statement. “We were also pleased by the continued momentum across all of our key growth areas, including customer engagement, identity, and unified communications,” he added.
Looking ahead to the fourth quarter, the company said that it expects group turnover to come in the range of $305 million to $306 million, which is above the Street’s expectations for $300.2 million.
Adjusted earnings – which exclude items such as an estimated $18 million in stock-based compensation expense and $62 million of amortization expense of acquired intangible assets – are anticipated to be in the range of $1.41 to $1.42 in the final three months of the year, yet again beating the market consensus $1.35.
Shares of LogMein were up by more than 10% in trading after the markets closed on Thursday.