Bankrate (RATE) Releases 1Q15 Results as SEC investigations Near Completion; RBC Capital Reiterates Outperform
RBC Capital reiterates an Outperform rating on Bankrate (NYSE: RATE) following 1Q15 results, and potential end to SEC investigation. Analyst Rohit Kulkarni says that the company completed its internal investigation and looks to have reached a settlement with the SEC whereby the company will pay a $15MM fine. RBC is reviewing their model and will publish a revised model shortly. Q1 Revenue was $141.5MM. RATE guided to FY15 revenue of $520MM-$530MM.
Kulkarni commented, "RATE disclosed updated financials for full-year 2014 and reported 1Q15 results that were mixed. Positively, the outcome of the SEC investigation appears less worse than feared. While 1Q guidance is materially below expectations, when excluding headwinds related to shifts in the Cards affiliate program, the outlook indicates modest growth and solid margin uplift. Estimates under review."
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Shares of Bankrate closed at $13.85 yesterday.