Published October 15, 2012
Shares of Bankrate.com (RATE) fell 25% in extended trade after the company posted preliminary third-quarter earnings that fell widely below Wall Street's expectations and cut its full-year outlook.
The North Palm Beach, Fla.-based publisher of personal finance content said it expects earnings per share excluding items to be in the range of 10 cents to 13 cents, down from 18 cents a year ago and below average analyst estimates of 20 cents, according to a Thomson Reuters poll.
The company sees revenue between $115.5 million and $117.5 million, below the Street’s view of $132.7 million.
For the full year, Bankrate anticipates revenue growing in the range of 8% to 12%, down from its July prediction in the low- to mid-20% range.
"We have continued to make adjustments and have been even more aggressive about cutting back our insurance lead volume as we got more disposition data and feedback,” Bankrate CEO Thomas Evans said in a statement.
He said the company has noticed meaningful improvements in quality and conversions and believes that will result in “better monetization” in 2013.
Shares of Bankrate fell more than 25% afterhours to $10.80, a lifetime low.
The company is expected to post third-quarter results on Nov. 1.