Blucora Inc (NASDAQ:BCOR) Google Ad Space Deal & FY14 Outlook Drives Stock Down

Posted by Chris Bell February 24, 2014 0 Comment 1769 views


There were two key market drivers which drove the stock of $815 million market capped internet information provider Blucora Inc (NASDAQ:BCOR) down by close to 8 percent during trading on 21st February. The first was the disappointing result an announcement stemming from its weak forecasts for FY14 during its 4Q13 results announcement and the second was the unfavourable terms of its agreement with search engine major Google disclosed on 21st February.

No More Google Ads On Blucora Inc

First the details of the “Search engine agreement” between Blucora Inc (NASDAQ:BCOR) and Google Inc. The fact that the renewed agreement between the two tech firms did not cover the lucrative and exponentially growing mobile search and mobile user base disappointed the markets. The exclusion of the potentially large user base from the search deal, prompted the investment community to opine that the deal is not attractive enough for Blucora Inc (NASDAQ:BCOR) which largely generates its revenue from offering online search and optimization solutions. The new pact will extend into March 2017. This promoted the price target of the stock being brought down from previously $31 to $25.

4Q13 and Full Year 2013 Highlights

While Blucora Inc (NASDAQ:BCOR) Director, President, Chief Executive Officer William J. Ruckelshaus expressed his happiness to a strong close to the previous fiscal 2013 and has been quoted to have said that, “We are pleased with our results for the fourth quarter and full year. Our businesses participate in large and growing markets and they are well positioned going forward.” Revenue was up 72 percent for the quarter and 41 percent for the full year. EPS for the quarter was up 67 percent while for the full year, Earnings was up 32 percent.

1Q14 Guidance

For the 1Q14 operations, Blucora Inc (NASDAQ:BCOR) expects its revenue to come in the range of $213 to $222 million.



About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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