AOL Earnings Top Forecasts

America Online reported first-quarter earnings surpassed Wall Street's expectations and announced a 2-for-1 stock split.

After the closing bell on Tuesday, AOL reported that first-quarter earnings grew by 255 percent to $68 million, or 26 cents per share, from $19.2 million, or 8 cents per share, a year ago. Analysts surveyed by First Call expected the company to turn a profit of 23 cents per share for the quarter.

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Amid what the company described as "strong across-the-board momentum," AOL said total revenue grew 65 percent to $858.1 million from $521.6 million a year ago. Advertising and commerce revenue saw a similar jump, reaching $143.4 million, compared with the year-ago $87.5 million. The company reported that it added 951,000 members during the quarter, boosting total worldwide membership to 13.5 million.

"We are particularly pleased to report that AOL membership grew at a record first-quarter pace, and that advertising and commerce revenues reached a new high," said Steve Case, AOL's chairman and chief executive, in a statement.

"This quarter's results," Case added, "demonstrate the continuing momentum in our operations."

Written By Khanh T.L. Tran