Benchmark Cuts Price Target on QuinStreet (QNST) Following Weak Q1 Results and Lower Guidance

Benchmark is reaffirming its Hold rating on shares of QuinStreet, Inc. (NASDAQ: QNST) following its Q1 results and is reducing its price target from $13 to $11.

The company reported its Q1 results below expectations as its Education and Financial operating segments experienced weakness. The firm reports QuinStreet's Education segment was impacted by new regulations, while its Financial segment was hindered by affiliate losses and pricing declines.

Management cut its 2012 revenue guidance from a midpoint of 15 percent growth to flat. QuinStreet also announced a $50 million stock buyback program.

To go inline with the company's new outlook and recent performance, the firm is reducing its 2012 revenue and EBITDA estimates from $458 million and $97 million to $408 million and $82 million.

For an analyst ratings summary and ratings history on QuinStreet, Inc. click here. For more ratings news on QuinStreet, Inc. click here.

Shares of QuinStreet, Inc. closed at $11.10 yesterday.

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