Boston, MA 04/09/2014 (wallstreetpr) – Constant Contact Inc (NASDAQ:CTCT), a provider of business marketing solutions with market value of $876 million, announced its expectation of strong revenue growth in the current year. The company also issued attractive preliminary results for the current quarter.
The announcement by the company about its positive revenue expectations came as a much-needed relief for investors. Investors have been worried about the future of business service providers and stocks in this category have had very little to show in the past weeks. In fact, shares of CTCT fell more than 27 percent amid concerns over the prospects in business service industry. It seems the company’s announcement will be able to restore investor confidence. Positive signs can be seen already with shares of the e-mail marketing provider jumping to a new high in six years during trading Tuesday. Currently, shares are up more almost 30 percent.
First quarter preliminary
Constant Contact Inc (NASDAQ:CTCT) expects revenue in the current quarter (fiscal 2014 first quarter) to increase by up to 15 percent. Thus, revenue is expected to come in the range of $78.7 to $78.8 million. Net income is projected to come between $0.65 and $0.75 million. The release of the results is May 1.
Optimistic full-year revenue outlook
For the fiscal 2014, Constant Contact Inc (NASDAQ:CTCT) adjusted its previous outlook upwards. The company said is expecting revenue to increase by 16 percent, translating to about $330 million. The previous revenue growth projection was 13 percent. According to CEO Gail Goodman, the company expects to benefit from the addition of more customers and higher revenue per client.
Essentially, Constant Contact believes that it can improve its market share significantly this year and in the future. These improvements should be able to lead to higher revenue. Given the competitive cost and expenses control measures already in place. The marketing solutions provider believes that higher revenue will have a positive impact on its bottom line.
Analysts upgrade
Following the upbeat first quarter preannouncement, shares of Constant Contact Inc (NASDAQ:CTCT) had their buy recommendation reiterated at Needham and Company. The analysts currently have a price target of $39 on the stock.
The company makes and sells of software targeted at providing marketing solutions. In the current competitive business environment, more and more companies are looking for effective ways to reach and maintain customers. In that note, Constant Contact Inc (NASDAQ:CTCT) steps in with its software solutions which include e-mail marketing.
