PFSweb (PFSW), a provider of eCommerce services for consumer companies, reported on Wednesday better-than-expected adjusted earnings for the fourth quarter, prompting its shares to climb 22% in afternoon trading.
For the three months ending December 31, the Texas-based company reported a net loss of $2.7 million, or 22 cents per share, including a $3.2 million loss from discontinued operations. This compares with a loss of $0.9 million, or 10 cents per share, a year earlier.
However, excluding the effects of the discontinued operations, earnings would have been about positive 4 cents per share, exceeding the 5 cents per share loss expected by analysts. Revenues were $76.3 million, up from $72.8 million, but fell short of the $81.9 million expected by analysts.
"We believe we are well positioned to maintain strong growth moving forward, as we expect demand for our services will continue to increase," said CEO Mark Layton. "Our pipeline for potential new Service Fee business currently totals more than $50 million, based on client projections, the largest in PFSweb's history."
To support the projected growth, the company said it will expand capacity at some of its warehouse and facilities. PFSweb, whose offerings include interactive marketing and customer care services, counts Roots Canada, Xerox, Lucky Brand Jeans and Kate Spade among its clients.
For 2011, the company expects adjusted earnings before interest, taxes, depreciation, and amortizatiom (EBITDA) of between $6.0 million to $7.0 million. It had an adjusted EBITDA of $5.5 million in 2010.
PFSweb's shares were up 74 cents at $4.05 as of 12:13 pm EST on Wednesday.