Bankrate Shares Tumble on Profit Warning

by Nate Wooley | October 17, 2012 2:18 pm

Bankrate Shares Tumble on Profit Warning

When you rely on referrals as your core business, you need to keep them coming. That’s what’s giving Bankrate (NYSE:RATE[1]) such a hard time.

The firm, which operates personal finance websites including its flagship bankrate.com, changed its expected revenue growth to 8% to 12%, reported Rueters[2]. That’s down from the low- to mid-20s it had previously expected.

The announcement had the predictable result. Bankrate stock lost as much as 25% of its value on Monday, closing at $14.50 per share. It’s now around $11.10 in midday Wednesday trading.

The lowered expectations come from a decline in insurance referrals from the firm’s websites. Bankrate now expects to earn 2 to 3 cents per share in the current quarter on revenue of around $115 million dollars.

More from the banking sector:

Endnotes:
  1. RATE: http://studio-5.financialcontent.com/investplace/quote?Symbol=RATE
  2. reported Rueters: http://www.reuters.com/article/2012/10/15/us-bankrate-outlook-idUSBRE89E1HM20121015
  3. 2012 Banking Survey: Banks Go Fee Happy: http://investorplace.com/2012/09/2012-banking-survey-banks-go-fee-happy/
  4. Man Tries Holding Up Bank For a Buck: http://investorplace.com/2012/10/man-tries-holding-up-a-bank-for-a-buck/
  5. Cyber Attacks on Banks Continue: The Latest Victim?: http://investorplace.com/2012/09/cyber-attacks-on-banks-continuing/

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