Martha Stewart Living Omnimedia (ticker: MSO) shares jumped 16% yesterday after CEO Susan Lynn told investors that advertising pages will grow 35% in Q2. MSO's market cap increased by $172 million.
Lynn's comments reflect higher expectations from the company's 30% forecast on its April 26, 2005 conference call. Here's a quote:
Significant improvements in our operating results will take time, but a positive uptick in ad sales, a strong market for the new syndicated show, and the momentum created by our resent announcements lead us to believe we are seeing early signs of a recovery. At our flagship magazine, strong circulation and readership numbers, as well as Martha's unencumbered return, should lead to positive page growth in the second quarter in excess of 30% and add revenue growth exceeding this amount