Yelp plunges after sales outlook misses estimates (YELP)

pulse

February 9, 2017 9:50 PM

Yelp's stock is still up about 129% for the past year.

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Yelp shares slumped by as much as 11% in after-hours trading Thursday after the companys projection for first-quarter sales missed analysts expectations.

The business-reviews site said it expected first-quarter revenue in a range of $195 million to $199 million. But analysts had estimated $204.4 million, according to Bloomberg.

Yelp reported adjusted earnings per share (EPS) of $0.27 for the fourth quarter, topping the forecast for $0.25. Net revenue was $194.8 million, a hair above the estimate for $194.4 million. "Jeremy Stoppelman in the earnings release.

Local advertising accounts — an important metric that tracks how many small businesses are patronizing Yelp — grew 24% year-over-year in Q4 to about 138,000.

The stock's drop in after-hours trading was a blip, as it gained 129% in the year through Thursday's market close.

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