Rocket Fuel Inc. Q3 Beats Views; Posts Strong Q4 Outlook

Rocket Fuel Inc.

gained more than 10 percent in the extended session Wednesday after beating third-quarter expectations and posting a fourth quarter outlook higher than the Wall Street consensus. The Redwood Shores, Calif., automated marketing company forecast fourth-quarter revenue of $140 million to $165 million. including $18 million to $22 million from a recent acquisition. Analsts expect fourth-quarter revenue of $140 million. Higher fixed costs resulted in gross margin narrowing in the recent period to 46.2 percent, from 49 percent a year earlier. The company's third-quarter employee headcount grew 87 percent from a year earlier, to 1,028 people, Rocket's third-quarter loss widened to $22.8 million, or $0.61 cents a share, from a year-earlier loss of $6.9 million, or $0.61 a share. The adjusted loss for the recent period was $0.18 cents a share, compared with $0.16 cents a year earlier. Revenue grew 63 percent to $102.1 million, from $62.5 million last year. The recent period included $6 million from a recent acquisition. Wall Street expected an adjusted loss of $0.30 cents a share, on revenue of $98.6 million. Rocket Fuel traded recently in the extended session at $18 a share, up $1.77.