By midafternoon, shares had slumped 17.3% to $9.84.
Trading volume of 1.1 million was nearly 14 times its three-month daily average.
The online media company reported a 1.3% increase in revenue to $32.6 million. However, analysts surveyed by Thomson Reuters had anticipated sales slightly higher at $33.9 million.
Total online advertising revenue climbed 1.2% to $20.1 million, with local online advertising posting a 7.1% jump.
E-commerce revenue of $3 million fell 4.4% from the year-ago quarter.
Excluding one-time charges, adjusted net income came in at 2 cents a share, 84.6% lower than a year earlier. Analysts had expected net income of 11 cents a share.
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TheStreet Ratings team rates XO GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate XO GROUP INC (XOXO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
- You can view the full analysis from the report here: XOXO Ratings Report