“[Directory and communications services provider] Neustar, Inc. (NSR) said September-quarter earnings per share jumped 31% to $0.51, topping the consensus of $0.44. Revenue increased 18% and also exceeded the consensus. Management raised its full-year outlook. Per-share earnings should range from $1.76 to $1.84, implying at least 16% growth.
“Revenue should top $595 million, up at least 13%. The company said it plans to repurchase up to $250 million of common shares on an accelerated basis. Separately, Neustar agreed to acquire Targus Information Corporation, a provider of call-related information services, for about $650 million in cash. The company, which processes over 100 billion transactions per year, generated roughly $149 million in sales in the year ended September. The transaction, which should be completed by year-end, is expected to contribute at least $0.20 in per-share earnings in 2012. Neustar is rated Best Buy.”
Richard J. Moroney, CFA, Upside, 10/11/11
