Online wedding-planning company The Knot (KNOT) has not be doing well recently. When it announces earnings later this week, it may be doing a lot worse.
In the second quarter, net income was $2.3 million down from $4.8 million in the same period last year. Revenue was flat at a little over $28 million. Deutsche Bank and Oppenheimer took a dim view of the numbers and said so.
A look at analysts’ estimates for Q3 shows that the low end of the range for EPS in a loss of $.03 on revenue of $24.9 million. The firm’s online advertising and sponsorship businesses could be badly hurt by the downturn in online marketing sales.
In last year’s Q3, The Knot had revenue of $25 million and made $.09 a share. A loss would be quite a comedown.
The CEO of The Knot, David Liu, made $810,000 last year, $367,000 in base salary. That base moved to $370,000. In exchange, he has presided over a company which has watched it stock drop from a 52-week high of $19.32 to $5.90. Nice work.
If the company comes in at the low end of estimates, it is a $4 stock.
Douglas A. McIntyre