Online Resources Corp. falls to 52-week low, misses Q3 profit expectations
Shares of Online Resources Corp. (Nasdaq: ORCC) got pummeled to a new 52-week low on news after the close on Thursday that the provider of web-based financial technology services missed Wall Street’s third-quarter earnings expectations.
Chantilly, Va.-based Online Resources reported a net income of $1.1 million, or $0.04 per share, for the three months ended Sept. 30, while eight analysts polled by Thomson Financial were looking for earnings of $0.07 per share. A year earlier the company booked a net loss of $3.4 million, or $0.13 per share.
Revenue improved 21% to $34.2 million, compared with $28.3 million during the same three months of 2006. Wall Street had projected revenues of $34.02 million.
“Our solid results in the third quarter were due primarily to continued growth in transactions and consumer adoption of bill pay,” said chairman and CEO Matthew Lawlor in a statement.
Looking ahead, Online Resources announced a fourth-quarter 2007 revenue guidance of between $37.3 million and $38.8 million, just short of the $39.17 million projected by analysts.
“Our view is tempered by a higher mix of volume-priced bill payments from large clients,” said Lawlor. “We are also making some more conservative assumptions on the deployment of expedited payment services for banks and billers.”
Online Resources provides financial software and services such as payments processing to banks in return for a monthly fee.
At 3:45 p.m. ET, Online Resources Corp. (ORCC) shares had lost $4.04, or 33%, to $8.25. The previous 52-week low was $9, set on Feb. 15. The 52-week high of $13.80 was reached on Aug. 9.
