NEW YORK (AP) -- Shares of consumer review service Angie's List Inc. fell on Thursday, a day after the company reported a narrower third-quarter loss but gave a weak revenue forecast for the fourth quarter.
THE SPARK: Late Wednesday, Angie's List reported a net loss of $13.5 million, or 23 cents per share. That compares with a loss of $18.5 million, or 32 cents per share, last year. Revenue rose 56 percent to $55.5 million as membership and service provider revenue both increased. Analysts expected a loss of 20 cents per share on revenue of $66.1 million.
The Indianapolis company predicted fourth-quarter revenue of $68 million to $69 million. Analysts expect $70.4 million.
THE BIG PICTURE: Angie's List provides online access to business ratings and reviews. Its members review companies that provide services for their homes, yards and cars, as well as health care providers.
THE ANALYSIS: Raymond James analyst Aaron Kessler said in a note to investors that online revenue improved, but the number of new service providers was well below expectations, as was the revenue outlook due to slower growth in both service providers and members. He kept his "Outperform" rating on the stock but lowered his price target on the stock to $23 from $29.
SHARE ACTION: Shares fell 84 cents, or 5.4 percent, to $14.61 in afternoon trading. The stock has risen 29 percent since the beginning of the year.
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