Skift Take
Despite outperforming, the stock headed down in after-hours trading — but nowhere near as down as it was last year. Has Yelp found the right mix to move forward?
— Jason Clampet
Yelp’s stock tumbled in extended trading Wednesday after its revenue outlook for the fourth quarter fell below Wall Street expectations.
The San Francisco online review website said it expects revenue of $211 million to $216 million in the final three months of the year. Analysts were expecting $234.3 million, according to FactSet.
Yelp’s Chief Financial Officer Lanny Baker told analysts in a conference call after the earnings report that the outlook reflects “third-quarter business trends” and the company’s sale of its online food ordering unit Eat24 to Grubhub, a deal that closed Oct. 10.
Shares in Yelp were down about 6 percent in after-hours trading following the release of the earnings report.
The company, however, reported better-than expected third-quarter earnings. Net income was $7.9 million, a 73 percent increase from the year-earlier period. On a per-share basis, Yelp said it had net income of 9 cents. The average estimate of 18 analysts surveyed by Zacks Investment Research was for a loss of 1 cent per share.
Yelp posted revenue of $222.4 million in the period, which also topped Wall Street forecasts. Fifteen analysts surveyed by Zacks expected $220.5 million.
This story was generated by Automated Insights using data from Zacks Investment Research.
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