RetailMeNot 4Q results top Wall Street's view, but 1Q, full-year revenue outlooks disappoint
A dismal outlook from RetailMeNot overshadowed a very strong fourth-quarter and its shares tumbled 11 percent before the opening bell.
The online coupon company projected revenue this year of between $275 million to $285 million, well short of the $305.3 million that Wall Street had been looking for. Its first-quarter expectation of revenue between $57 million and $60 million also caught industry analysts off guard. A poll by FactSet puts those projections closer to $67.5 million.
The company's expectations going forward are at odds with the most recent quarter in which it breezed past Wall Street sales and profit expectations.
RetailMeNot earned $14 million, or 26 cents per share, for the three months ended Dec. 31. A year ago it earned $13.8 million, or 26 cents per share.
Earnings, adjusted for stock option expense and amortization costs, were 43 cents per share, or 11 cents better than expected, according to a poll by Zacks Investment Research.
Revenue was $87.4 million, up from $78.5 million a year earlier. Analysts expected $86.2 million, according to Zacks.
Revenue from mobile websites, apps and from its in-store product soared 90 percent to $22.2 million. Those sources make up 25 percent of total revenue.
For the year, the Austin, Texas, company reported a profit of $27 million, or 49 cents per share. Its adjusted profit was $1.03 per share. Revenue totaled $264.7 million.
The company also announced an authorization to buy up to $100 million of its own tock. The buyback is expected to be completed over the next 24 months.
Shares of RetailMeNot Inc. slumped $1.77 to $13.70 before the market opened.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SALE at http://www.zacks.com/ap/SALE
Keywords: RetailMeNot, Earnings Report