QuinStreet Loss Widens, Outlook Weak; Stock Down - Update

(RTTNews) - Online performance marketing company QuinStreet Inc (QNST), Tuesday said its loss for the fourth quarter widened from a year ago, hurt by lower revenue and one-time expenses. Adjusted earnings and revenue for the quarter missed Wall Street estimates.

Looking ahead, the company provided some weak revenue guidance for the first quarter, sending its shares down 9 percent in after-hours trade on the Nasdaq.

About prospects for its businesses, QuinStreet said in auto insurance, almost 50 percent of revenue is from new products, and that it expects various segments to witness sequential growth in the first quarter.

QuinStreet provides customer acquisition programs for its clients.

The Foster City, California-based company posted quarterly net loss of $6 million or $0.14 per share, compared with a loss of $1.6 million or $0.04 per share last year.

Results for the quarter include amortization costs of $4.5 million, stock-based compensation expense of $2.3 million and goodwill impairment charges of $1.2 million.

Excluding items, adjusted earnings for the quarter were $0.01 per share, compared with $0.14 per share a year ago.

Analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter dropped to $67.6 million from $75.7 million in the prior year. Analysts expected revenue of $68.5 million for the quarter.

For the first quarter, QuinStreet projects revenue of about $71 million, while analysts currently expect $77.09 million.

QNST closed Tuesday at $4.99, $0.08 or 1.58%, on a volume of 167k shares. In after hours, the stock dropped $0.49 or 9.82% at $4.50.