Move Shares Down 12% in Q1

RISMEDIA, May 3, 2007-(MarketWatch and industry reports)-Move Inc. ( MOVE 4.08, -0.62, -13.2% ) shares fell [12% to $4.15] in Wednesday morning trade.

Late Tuesday, the Westlake Village, Calif.-based real estate information provider reported a first-quarter net profit of $1.4 million, compared with a net loss of $1.16 million last year. Net income applicable to common stockholders was $163,000, or breakeven on a per-share basis, compared with a loss of $2.33 million, or 2 cents a share, a year ago.

Revenue rose to $71 million from $69 million. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of 2 cents on revenue of $75.2 million.

The company's first-quarter earnings missed Wall Street estimates and several analysts lowered their price targets on shares.

During the past year, the stock has traded between $3.73 and $6.82.

According to reports, analysts polled by Thomson Financial expected the company to hit sales of $75.2 million with earnings of 2 cents per share.

Move reported that its sales growth was impacted by the reworking of two of its three main businesses, as well as the launch of a new venture.

According to published reports, Needham & Co. analyst Mark May said in client note the company had poor rental, retail advertising and Welcome Wagon sales, but they were balanced by growth in its Realtor.com and Top Producer units. May kept a "Buy" rating on the stock, but reduced his price target on the stock to $5.50 from $9 on the "disappointing" results. He said even though the company's top-line growth was sub-par, the company should still produce adjusted earnings-per-share growth of 20 percent for the year.

Craig-Hallum Capital analyst Mark Argento cut his rating on the shares to "Accumulate," or "Hold," from "Buy" and reduced his price target to $5 from $7, according to reports.

Real Estate Hot Topics

Profit Center: Real Estate Tips, Training & Events

RISMedia Solutions

RISMedia on the Go

Today's Featured Listing