Netflix adds 5.3M subscribers in Q3 >>> READ MORE

Bankrate Shares Tumble on Profit Warning

Declining insurance referrals lead to lower expectations


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, 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.

More from the banking sector:

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC