Internet service provider Earthlink Inc. (ELNK) recently turned a first-quarter profit that beat expectations as the company upped its full-year forecast. The Atlanta, Ga.,based company reported a first-quarter profit of $54.4 million, or 49 cents a share, compared with a loss of $30 million, or 24 cents a share, in the year-ago quarter. Results beat Wall Street's expectations for a profit of 33 cents a share.
As aforementioned Earthlink also upped its full-year outlook. The company now expects net income in a range of $153 million to $163 million, which is in line with analysts' estimates. Earthlink also expects annual adjusted earnings before interest, taxes, depreciation and amortization (or EBITDA) to fall between $245 million and $260 million.
With a FusionIQ Master Technical Score of 80 and close to 19.00 % of its float short ELNK looks like it not only has solid earnings momentum behind it but it also has price momentum. The point and figure target of $ 14.50 offers good potential reward.