Bankrate Inc. Earnings: Profit Down
Bankrate Inc. (NYSE:RATE) reported its results for the third quarter.
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Bankrate Inc. Earnings Cheat Sheet
Results: Net income for Bankrate Inc. fell to $2.6 million (3 cents per share) vs. $7.1 million (7 cents per share) a year earlier. This is a decline of 64.1% from the year-earlier quarter.
Revenue: Rose 3.4% to $116.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Bankrate Inc. reported adjusted net income of 13 cents per share. By that measure, the company beat the mean estimate of 11 cents per share. It fell short of the average revenue estimate of $126.8 million.
Quoting Management: “The additional adjustments we have made in our insurance leads business to aggressively cut back on sources to drive higher conversion and quality has resulted in a short term reduction to our results and guidance,” Mr. Evans stated. “We will continue to execute on our strategy to move our insurance leads platform to higher quality, higher converting traffic which we believe will drive higher value and open up new product opportunities to drive growth in 2013,” Mr. Evans commented.
The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by one cent, and in the first quarter, it came in under estimates by 2 cents.
Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the fourth quarter is now 9 cents per share, down from 21 cents. In the past month, the average estimate for the fiscal year has fallen from 74 cents per share to 54 cents.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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