Dolan Media adjusted 3Q profit misses Wall Street

Dolan Media's stock fell $1.56, or 37.4 percent, to $2.61 in afternoon trading. The stock hit an all-time low of $2.45 earlier in the session.

The company reported earnings of $2.5 million, or 9 cents per share, compared with a loss of $7.5 million, or 38 cents per share, a year earlier.

Excluding a $1.5 million breakup fee, net income was $3.4 million, or 12 cents per share.

Analysts surveyed by Thomson Reuters forecast a profit of 13 cents per share. Analysts' estimates typically exclude one-time items.

Prior-year results included a $9.9 million interest expense related to redeemable preferred shares.

For the period ended Sept. 30, revenue climbed 25 percent to $47.9 million from $38.3 million to surpass Wall Street's estimate of $45.5 million.

The company's September acquisition of National Default Exchange contributed $6.6 million to revenue results. Professional services revenue increased to $25.7 million from $17.4 million.