Financial Site Bankrate Lowers Outlook On Weak Display Ad Market

Financial site Bankrate (NSDQ: RATE) had been holding up admirably in the face of the weak mortgage market, as it consistently turned in strong results in recent quarters. In the past month or so, investors obviously lost confidence, sending its shares down over 35 percent, to around its 52-week low. And this morning the company finally acknowledged that the weak economy would take its toll. Though it says the cost-per-click, lead-gen business is healthy, it sees softness at its large financial advertisers. Bankrate now expects revenue for 2008 between $164-$169 million, down from a range of $167-$172 million. For the just-ended quarter, Bankrate says revenue came to just above $40 million, compared to estimates of $41.2 million. The good news: even at the lowered range, revenue will still be up over 70 percent for the year. Release.