by Nate Wooley | October 17, 2012 2:18 pm
When you rely on referrals as your core business, you need to keep them coming. That’s what’s giving Bankrate (NYSE:RATE) 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. 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.
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