Ziff Davis Inc

Ziff Davis delivered a mixed but broadly resilient second quarter, beating analyst expectations on adjusted earnings even as reported revenue reflected the deliberate reshaping of its business. The company posted adjusted diluted EPS of $1.03, well ahead of the $0.83 consensus, on revenue of $286.74 million, a decline of 18.6% year over year that analysts had largely anticipated given the reclassification of its divested Connectivity segment as discontinued operations. The $1.22 billion sale of that business, which generated $1.18 billion in cash at closing, dominated the quarter's headline numbers, swinging total net income to $624.46 million once the $676.61 million gain was included, even as continuing operations produced a GAAP net loss of $52.20 million, partly due to a $54.84 million goodwill impairment in the Health and Wellness segment. The divestiture also left Ziff Davis with a dramatically strengthened balance sheet, with cash surging to $1.61 billion, supporting $121.50 million in share repurchases during the quarter, a buyback pace that helped lift adjusted EPS 13.2% despite a modest dip in adjusted net income.