Bankrate shares drop after-hours on 3Q outlook
NEW YORK (AP) — Shares of Bankrate Inc. tumbled in after-hours trading Monday after the company said it expects third-quarter net income declined as it continued to absorb charges related to its initial public offering and other costs.
The online publisher of financial data estimated net income of between $11.3 million and $12.8 million, or 2 to 4 cents per share, for the July-September quarter. That's down from $17.7 million, or 7 cents per share, in the third quarter of 2011.
Excluding the special IPO and other expenses, Bankrate estimated its adjusted profit at 11 to 13 cents per share, compared with 18 cents per share in the third quarter of 2011.
New York-based Bankrate began trading as a public company in June 2011.
Third-quarter revenue is expected to be between $115.5 million and $117.5 million, up from $112.9 million in last year's third quarter.
Bankrate forecast full-year revenue would rise 8 to 12 percent from last year.
Bankrate's companies include its flagship website Bankrate.com, as well as Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. The company also provides services to personal finance sites such as Yahoo, AOL, CNBC and Bloomberg, and licenses editorial content to more than 100 newspapers.
Bankrate shares fell 17 cents to close at $14.50. They dropped $3.48, or 24 percent, to $10.92 in after-hours trading.