Bankrate cuts forecast due to soft ad market

Weakness in the financial markets has hurt Bankrate's display advertising business, the company said in a statement.

Bankrate said earnings before interest, taxes depreciation, amortization and stock compensation expense will range between $12.3 million and $12.7 million for the quarter ended June 30.

Bankrate said it expects revenue to be just above $40 million during the quarter.

Analysts polled by Thomson Financial, on average, forecast Bankrate would generate $41 million in revenue.

Because of declines in display advertising, Bankrate cut its full-year sales forecast range. Bankrate now expects revenue to range between $164 million and $169 million. It previously anticipated revenue of $167 million to $172 million.

Analysts expected revenue of $170.9 million for 2008.

Earnings before interest, taxes depreciation, amortization and stock compensation expense will now likely range between $54 million and $58 million, Bankrate said in a statement. It previously expected profit before interest, taxes, depreciation, amortization and stock compensation expense, between $64 million and $68 million.

Display advertising at Bankrate is not getting worse, but there has been little improvement as well, Thomas Evans, the company's chief executive, said in a statement.

Bankrate is scheduled to release full second-quarter results Aug. 4.