KongZhong shares rise on strong report
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NEW YORK (AP) - Shares of KongZhong Corp. jumped on Wednesday after the Chinese wireless entertainment company reported sharply higher fourth-quarter profit and revenue.
The company also gave a strong first-quarter revenue outlook.
U.S.-listed shares of KongZhong rose $1.81, or 23 percent, to close Wednesday at $9.60. Shares have traded between $4.90 and $16.16 in the past year.
KongZhong's profit almost quadrupled to $2 million, or 5 cents per American Depositary Share, from $522,000, or 1 cent per ADS, a year ago.
Revenue rose 28 percent to $34.3 million.
The company also said it expects first-quarter revenue of $37.5 million. Analysts polled by Thomson Reuters are expecting $35 million in revenue.
Following the report, Brean Murray, Carret & Co. analyst Andrey Glukhov reiterated a "buy" rating and $12 target price on shares. In a client note, Glukhov wrote, "we believe the business has found its bottom and the management team is navigating reasonably well" despite a difficult industry environment.
In the full year, the company earned $12.6 million, or 33 cents per ADS, compared with a loss of $20.7 million, or 58 cents per ADS, a year ago.
Revenue rose 36 percent to $131.3 million.
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