Shares of AOL Inc., the publisher of websites such as the Huffington Post and TechCrunch, climbed the most in more than a month after Barclays Plc said profit will grow faster than analysts’ estimates.
AOL shares rallied $3.03, or 8.4 percent, to end Wednesday at $39.20, according to preliminary figures in New York. The intraday gain was the biggest price increase since Feb. 8. The shares had climbed 22 percent this year through Tuesday, outpacing the Standard & Poor’s 500 Index’s 9.6 percent rise.
Cost-cutting and modest revenue growth are helping AOL boost profits, Anthony DiClemente, a Barclays analyst, said in a research note Wednesday. The company can add $100 million of annual profit alone if it shuts down its local-news network, Patch, or breaks even with the division by 2014, DiClemente said.
Profit will jump 34 percent this year to $441 million, leaving out interest, taxes, depreciation and amortization, Barclays estimated. The average analyst estimate compiled by Bloomberg calls for 30 percent growth.
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