Demand Media Inc. (DMD) announced after the close Tuesday that its board of directors has authorized a plan to explore separating its business into two independent, publicly-traded companies.
The Company also reported fourth quarter adjusted EPS of $0.12, up from $0.08 in the previous year. The consensus estimate was for EPS of $0.11. The Company expects to report first quarter adjusted EPS of $0.07 to $0.08 and between $0.39 and $0.43 for the full year 2013. The consensus estimates are for EPS of $0.10 and $0.46.
Demand Media gapped open sharply higher Wednesday and is now up 1.13 at $8.97 on above average volume. The stock has risen to over a 3-week high and has re-crossed its 50-day moving average.
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