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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