Web.com (WWWW) is down big today after missing their revenue numbers for the second quarter.
As of publication with about 40 minutes of trading left, Shares of Web.com are trading at $20 even down 6.55 after hitting an intraday, 52 week low of $19.37.
Web.com acquired Snapnames back in May, and they own two of the top ten domain registrars Register.com and Network Solutions.
The stock was $34.60 back in June when Google announced they would be getting into the business of selling domains. The stock fell to $26.32 on heavy volume the day after Google’s announcement.
Several analysts have downgraded the stock today.
BidnessEtc.com wrote:
Shares of Web.com dropped as much as 25% today after it missed revenue estimates for the second quarter of its fiscal 2014, and announced the acquisition of UK-based online directory Scoot.
Web.com Group Inc. (WWWW) yesterday announced second-quarter earnings results for its fiscal ‘14 (2QFY14). The Internet services company that caters to small and medium enterprises reported a weak set of results: earnings were in line with estimates, but revenue missed the consensus projection.
Web.com said its net income for the quarter was $33.6 million, which rose by 27% year-over-year (YoY). Earnings per share (EPS) rose 22% from the same quarter last year to 62 cents, and were in line with analysts’ estimates. The company, however, reported a 10% increase in revenues to reach $145 million, missing the consensus estimate of 146.90 million.
The revenue gains were attributed to an increase in new subscribers by 38,500 users, bringing the total count to 3,210,000 users at the end of the quarter. Web.com’s Average Revenue Per User (APRU) clocked in at $14.9, up 80 cents from the same quarter last year.
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