Bankrate Shares Tumble on Profit Warning

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[1]) such a hard time.

The firm, which operates personal finance websites including its flagship, 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:

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  5. Cyber Attacks on Banks Continue: The Latest Victim?:

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