OpenTable Shares Down 8% On Weak Outlook, But Q2 Profit Tops View

(RTTNews) - Shares of OpenTable, Inc. (OPEN) plunged seven percent in extended trading on Thursday after the restaurant reservation solutions provider released earning and revenue guidance for the third quarter below Street view.

However, the company reported a profit for the second quarter that grew from last year, reflecting double-digit revenue growth amid improvement in seated diners. Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.

"We're pleased with the strong growth in seated diners during the second quarter across both our North America and International business segments. With 38% of our seated diners now originating from smartphones and tablets, mobile remains a strategic focus for us and we're continuing to invest in mobile product optimization and adoption," President and CEO Matt Roberts said in a statement.

The San Francisco, California-based online restaurant reservations provider reported net income of $8.32 million or $0.35 per share for the second quarter, higher than $5.75 million or $0.25 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $11.96 million or $0.50 per share, compared to $9.73 million or $0.42 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 15 percent to $45.57 million from $39.56 million in the same quarter last year, but missed fifteen Wall Street analysts consensus estimate if $46.03 million by a whisker.

Total North America revenues for the quarter grew 15 percent to $39.73 million, and total international revenues also increased 15 percent to $5.84 million from the year-ago quarter.

Reservation revenues grew 24 percent to $27.7 million, and subscription revenues increased 8 percent to $15.1 million, while other revenues declined 15 percent to $2.8 million from the prior-year quarter.

Installed restaurant base at the end of the quarter totaled 28,274, up from 25,037 at the end of the year-ago quarter. Seated diners for the quarter grew 26 percent to 38.23 million from 30.28 million last year.

Looking ahead to the third quarter, the company expects adjusted earnings in a range of $0.38 to $0.42 per share, on projected revenues between $45.0 million and $46.3 million. Analysts currently expect the company to report third-quarter earnings of $0.48 per share on quarterly revenues of $46.48 million.

For the fiscal 2013, the company now anticipates adjusted earnings in the range of $1.80 to $1.92 per share, compared to the prior forecast of $1.79 to $1.96 per share. Revenues are now forecast in the range of $186.2 million to $190.1 million, compared to its previous guidance range of $186.1 million to $193.1 million.

Street is currently looking for full-year 2013 earnings of $1.93 per share on annual revenues of $188.0 million.

OPEN closed Thursday's regular trading session at $69.40, up $5.72 or 8.98% on a volume of 3.24 million shares. However, the stock plunged $4.65 or 6.70% in after-hours trading.