Bankrate Earnings: Half Empty & Half Full (RATE)

Bankrate Inc. (NASDAQ: RATE) has just posted non-GAAP EPS of $0.33 on a 70% gain in revenues to $40.2 million.  First Call estimates were $0.33 EPS on $40.22 million.  The trick to judging this is by interpolating the data versus the environment.

The company noted that it had previously lowered guidance back on July7, 2008, on advertising revenue softness.  It puts revenues at $164 to$169 million and $54 to $58 million in adjusted EBITDA for 2008.  Wehave estimates at $165.6 million in revenues for the year.  Previousguidance for revenue was between $167 to $172 million and AdjustedEBITDA of between $64 and $68 million.

Calling this one is somewhat like tossing a coin in the odds makingbusiness.  The good news is that things are not seeming to drop furtheroff a cliff.  The bad news is that it isn’t saying that the pessimistictone was only temporary.

As this was not any worse or at least not adding salt on an open wound,we’d give it a "chicken bull" verdict with a directional marketcaveat.  If that doesn’t sound like very much conviction that’s becauseof the environment.

Bankrate shares closed up 0.1% at $31.59 in regular trading and its 52-week trading range is $24.54 to $57.32.

Jon C. Ogg
August 4, 2008