Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

QuinStreet Shares Decline On Lower Q3 Profit, Weak Outlook

RELATED NEWS
Trade QNST now with 
4/30/2012 10:19 PM ET

Shares of Internet marketing and media company QuinStreet, Inc. (QNST: Quote) declined more than 14 percent in after-hours trading on Monday after the company reported a 55 percent decline in profit for the third quarter. Both earnings per share and revenue came in below analysts' expectations.

The company also forecast fourth-quarter results to decline from last year and lowered its outlook for full-year revenues.

The California-based company's third-quarter net income was $2.87 million or $0.06 per share, down from $6.34 million or $0.13 per share in the same period last year.

Excluding items, adjusted net income for the quarter declined to $10.50 million or $0.23 per share from $12.58 million or $0.25 per share in the year-ago period.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenue declined 14 percent to $93.02 million from $107.71 million in the same period last year. Analysts had a consensus estimate for the quarter of $102.47 million.

Revenue for the education client vertical declined 19 percent from last year to $38.9 million, while revenue for the financial services client vertical decreased 20 percent to $38.9 million. However, revenue for other client verticals grew 39 percent to $15.3 million.

Looking ahead, QuinStreet expects fourth-quarter net income and revenue to decline from the previous year. Analysts expect the company to earn $0.24 per share for the quarter on revenues of $101.49 million.

For fiscal 2012, QuinStreet now forecasts revenue to be between $360 million and $370 million Earlier, the company forecast revenues of about $400 million. Analysts expect revenues of $396.19 million. Doug Valenti, CEO of QuinStreet said, "We continue to manage through challenges in Education and Financial Services that are creating uncertainty and weighing on our results. We are focused on strategies and initiatives that we believe will mitigate or overcome the challenges and return us to growth."

QNST closed Monday's regular session at $10.51, down $0.31 or 2.87 percent on a volume of 336,497 shares. In after-hours, the stock further declined $1.51 or 14.37 percent to $9.00.

Register
To receive FREE breaking news email alerts for QuinStreet, Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The Reserve Bank of New Zealand on Thursday raised its Official Cash Rate by 25 basis points, to 3.00 percent from 2.75 percent. The decision was in line with expectations, and it marks the second straight month with a rate hike following 24 straight meetings in which the rate was not changed. New Zealand's economic expansion has considerable momentum, with GDP estimated to have grown by 3.5 percent in the year to March. Apple Inc. said Wednesday after the markets closed that its second quarter profit rose 7% from last year, as sales surged and margins improved amid strong sales of its iPhones. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a slightly downbeat revenue forecast for the current quarter. Stocks moved mostly lower during trading on Wednesday, giving back some ground after trending higher over the past several sessions. Selling pressure was relatively subdued, however, limiting the downside for the markets. The major averages all closed in the red, although the tech-heavy Nasdaq underperformed its counterparts by a wide margin.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.