NaviSite Raises Revenue Guidance
Shares of managed hosting provider NaviSite Inc. (NAVI) are higher this morning after the company forecast revenue well above Wall Street’s expectations. Investors liked the results, as shares of NaviSite are up 80 cents to $8.58 a share (+11.5 percent) in early trading today on the NASDAQ exchange.
The company said late Tuesday that it expects sales between $36 million and $37 million for the quarter ending in October, while analysts polled by Thomson Financial had predicted revenue of $34.3 million. The company’s results will benefit from its recent acquisitions of netASPx, Alabanza and Jupiter Hosting, which totaled $56 million. Navisite expects full-year revenue of $170 million to $180 million, compared to analyst expectations of $150.5 million.
NaviSite has more than 1,000 customers and 14 data centers in the U.S., United Kingdom and India. The Andover, Mass. company provides application hosting services and operates a content distribution network. It has also added data center capacity with the Alabanza and netASPx acquisitions, expanding its colocation footprint.