Bankrate (RATE) Tops Q1 EPS by 4c; Issues Solid Q2 outlook

Bankrate (NYSE: RATE) reported Q1 EPS of $0.12, $0.04 better than the analyst estimate of $0.08. Revenue for the quarter came in at $93.3 million versus the consensus estimate of $81.89 million.

"Bankrate delivered first quarter results, with revenue and Adjusted EBITDA that were above the guidance thresholds provided in February.

"In Credit Cards, we are successfully diversifying how we attract consumers beyond search, with a more intense focus on paid marketing across social, display and direct response TV. The acquisition of the NextAdvisor business accelerates this diversification through its leading position in content marketing, which we plan to quickly extend to CreditCards.com.

"In our Banking segment, we have been successful in implementing our value-based pricing strategy in the mortgage vertical, posting the highest revenue level in 2.5 years. Leveraging our success in mortgage, we are continuing to test value-based pricing strategies for deposits. While beneficial, the impact has been muted by continued weakness in bank advertising demand for CDs. In addition, we are investing in our flagship Bankrate.com site with a complete re-design and technology upgrade, expected to go live later this year.

"In our Senior Care vertical, investment in our senior living facility sales team is paying off, as we are adding new communities to our network at a record pace, and by June expect to have fully offset the decline in facilities due to the previously disclosed loss of a significant account in January.

"Notwithstanding this quarter's financial performance, we are encouraged by recent trends. We remain laser-focused, executing on our key strategic initiatives and investments towards sustainable growth over the long-term," said Kenneth S. Esterow, President and CEO of Bankrate, Inc.

GUIDANCE:

Bankrate sees Q2 2016 revenues of $94.00-$98.00 million, versus the consensus of $86.60 million.

For earnings history and earnings-related data on Bankrate (RATE) click here.

You May Also Be Interested In

• Alphabet stock surges 11% to record high on Q1 earnings beat, first-ever dividend
• GrafTech International Ltd. (EAF) Tops Q1 EPS by 4c, provides outlook
• Chevron (CVX) Misses Q1 EPS by 3c