Banking & Finance

Bankrate Earnings Will Be Closely Watched By Traders (RATE, MOVE, TSCM)

On Tuesday, we’ll get to see earnings out of Bankrate Inc. (NASDAQ:RATE). The estimates from First Call for the internet-based consumer banking company are $0.39 EPS on $26.84 million in revenues.  Estimates for fiscal 2008 are $1.96 EPS on $142.76 million in revenues.

Analysts have an average price target north of $56.00, which is right in line with current share prices.   If Friday’s closing prices are any indicator and if the earnings were coming out immediately, it appears that options traders would be pricing in a move of up to $4.00 in either direction.

It will be interesting to see if the company even mentions the new competition coming soon from TheStreet.com (NASDAQ: TSCM) as it pursues its new MainStreet.com push in 2008.  We still think it was wiser for the company to partner with Move.com (NASDAQ: MOVE) like it did rather than to acquire it, and this will be the first quarter to reflect any of those efforts.

Bankrate’s 52-week trading range is $32.70 to $56.04 and this one has been doing incredibly well considering its market.  In fact, Friday was yet another 52-week high.

Jon C. Ogg
February 3, 2008