Bankrate Inc Earnings: Here’s Why Investors are Buying Shares Now

Bankrate Inc (NYSE:RATE) delivered a profit and missed Wall Street’s expectations, AND 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 1.39%.

Bankrate Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 44.44% to $0.10 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Decreased 13.62% to $105.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bankrate Inc reported adjusted EPS income of $0.10 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $106.34 million.

Quoting Management: “We have made significant progress with our strategic initiatives in our insurance business during the first half of 2013 and are now seeing a clear inflection point,” stated Thomas R. Evans, President and CEO of Bankrate, Inc. “Sharply higher conversion rates, higher monetization and increased demand for our high quality leads are fueling the growth we are now seeing in insurance in Q3, which we expect to accelerate in the second half. Going forward, we’re also expecting increased activity in our credit card business and expect that our core banking business will be solid,” Mr. Evans added.”

Key Stats (on next page)…

Revenue decreased 2.72% from $108.45 million in the previous quarter. EPS decreased 16.67% from $0.12 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 $0.14 to a profit $0.13. For the current year, the average estimate has moved up from a profit of $0.49 to a profit of $0.50 over the last ninety days.

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