Yelp's Stock Tumbles After Disappointing Outlook Offset Profit And Sales Beat

Yelp Inc.'s stock tumbled 14% in after-hours trade Tuesday, after the online reviews service beat second-quarter expectations, but provided a downbeat sales outlook for the current quarter and cut its full-year outlook. For the quarter ended June 30, Yelp swung to a loss of $1.3 million, or 2 cents a share, from a profit of $2.7 million, or 4 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came in at 12 cents, above the FactSet consensus of 1 cent. Revenue rose 51% to $133.9 million, above the FactSet consensus of $133.4 million, as better-than-expected brand advertising and other revenue offset a slight miss in local advertising revenue. Looking ahead, Yelp said it expects third-quarter revenue of $139 million to $142 million, below the FactSet consensus of $152.4 million. The company slashed its full-year sales outlook to range of $544 million to $550 million from $574 million to $579 million. The stock has tumbled 35% over the past three months through Tuesday's close, while the S&P 500 has slipped 1%.