Bankrate Inc Earnings: Here’s Why the Stock is Falling 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 down 25%.

Bankrate Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 53.85% to $0.06 in the quarter versus EPS of $0.19 in the year-earlier quarter.

Revenue: Decreased 18.08% to $93.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bankrate Inc reported adjusted EPS income of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $106.27 million.

Quoting Management: “In insurance, the strategic transition to higher quality, high-margin leads is moving even more aggressively forward — and with our deep cuts of poor performing traffic behind us in Q4, is now on-track in many of our key criteria, such as agent sign ups and retention,” said Thomas R. Evans, President and CEO of Bankrate, Inc. “That’s why we see Q4 as the bottoming out of that transition curve that we’ve discussed in the last two quarters. Encouragingly, in credit cards, we’re beginning to see the increased marketing activity across our portfolio of card issuers after a period of marketplace caution,” Mr. Evans added.

Key Stats (on next page)…

Revenue decreased 20.19% from $116.78 million in the previous quarter. EPS decreased 53.85% from $0.13 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 $0.16. For the current year, the average estimate is a profit of $0.6, which is the same with that ninety days ago.

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