Updated from 2:24 p.m. EDT

Ask Jeeves' ( ASKJ) second-quarter earnings more than doubled from a year ago on an acquisition-related surge in revenue, but the stock tanked and dragged down the Internet search space because of weak guidance for the current period.

The Emeryville, Calif., Internet index earned $11.6 million, or 18 cents a share, in the three months to June 30, up from earnings of $4.40 million, or 8 cents a share, a year ago. Revenue, which reflects the acquisition of Interactive Search Holdings on May 6, totaled $60.34 million in the latest quarter, up from $25.57 million a year ago.

Pro forma to eliminate asset amortization and other expenses, Ask Jeeves earned $15.7 million, or 24 cents a share, in the 2004 quarter, up from $5.2 million, or 10 cents a share, last year. Analysts surveyed by Thomson First Call were forecasting pro forma earnings of 22 cents a share on revenue of $56.8 million in the most recent quarter.

For the third quarter, Ask Jeeves expects to earn a pro forma $16.5 million, or 24 cents a share, on revenue of $74 million. Analysts had forecast a pro forma 27 cents a share on revenue of $76.6 million. For all of 2004, the company sees pro forma earnings of $1.03 a share on revenue of about $260 million. Analysts were expecting $1.04 a share on revenue of $260 million.

The stock swooned after the earnings were released, recently falling $4.46, or 14.4%, to $26.56. The decline extends a slide that began around the time of Google's early IPO filings at the beginning of June, when Ask Jeeves fetched almost $44. At its current level, the stock costs roughly 25 times this year's earnings estimate, 18 times next year's estimate and close to 5 times sales.

Other shares tripped up by the news were Yahoo! ( YHOO), down 74 cents, or 2.5%, to $29.26; FindWhat ( FWHT), down 55 cents, or 3.4%, to $15.78; and Infospace ( INSP), down $1.98, or 6.4%, to $28.76.

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