TheStreet.com (Nasdaq: TSCM) fell 1 1/8 to 5 Wednesday after the financial news Web site operator said revenue for the third quarter will be lower than analysts were expecting.
Earnings per share, however, will be within analysts’ forecast range, the company said. With $88 million in cash, the company said it aims to be cash flow positive by the second half of next year.
In June, TheStreet.com dropped its subscription fee and made its service free on the Web, relying more heavily on advertising. “Unfortunately, our projections didn’t account for the slower-than-anticipated implementation of our news distribution deals, and the impact of seasonality on advertising sales,” said Chief Executive Officer Tom Clarke. “These factors hampered our aggressive plans for page view and revenue growth.”
Analysts at First Union Securities and Thomas Wiesel Partners reportedly downgraded the stock following the news.