AOL Comes In Slightly Ahead Of Expectations

Jefferies & Co. has published a research report on AOL, Inc. AOL after 3Q results came in slightly ahead of expectations, boding well for FY2011. In the report, Jefferies writes "3Q results were slightly ahead of muted expectations. Gross revenues of $563.5M were down 26.2% Y/Y, but came in higher than consensus of $557M and our $555M. NEPS at $0.84 (adjusted for one time charges as per our calculation) was comfortably ahead of our $0.75. Adj. OBIDA came in at $158M vs. consensus of $156M. OIBDA margins came in at 28% vs. our expected 31%, down 54bps Q/Q, mostly due to a higher than expected cost of revenue." Jeffereis maintains its Hold rating and has raised the price target from $24 to $27. AOL, Inc. closed yesterday at $26.10.