Bankrate Earnings: Here’s Why the Stock is Rising Now

Bankrate Inc (NYSE:RATE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 12.76%.

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Bankrate Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 33.33% to $0.12 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Decreased 18.12% to $102.37 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bankrate Inc reported adjusted EPS income of $0.12 per share. By that measure, the company beat the mean analyst estimate of $0.09. It missed the average revenue estimate of $102.58 million.

Quoting Management: “We continue to see progress in the transition of our insurance channel to a higher-quality lead model, with our first sequential quarter over quarter growth since we began culling low performing lead sources a year ago,” said Thomas R. Evans, President and CEO of Bankrate, Inc. “Our banking and credit card verticals grew nicely, both showing double-digit growth over the same period last year,” Mr. Evans added.

Key Stats (on next page)…

Revenue increased 9.79% from $93.24 million in the previous quarter. EPS increased 100% from $0.06 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.17 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.68 to a profit of $0.48 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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