NEW YORK (TheStreet) -- Angie's List (ANGI) was plummeting on Thursday after missing bottom-line estimates over its fourth quarter.
In the three months to December, the home improvement online directory reported net income of 5 cents a share, 8 cents lower than Thomson Reuters estimates.
For the current quarter, management anticipates sales between $71.5 million and $72.5 million, lower than consensus of $74.14 million.
Here's what Wall Street analysts have to say:
Canaccord Genuity reiterated its "hold" rating but lowered its price target to $16 from $22. Analysts Michael Graham and Maria Ripps remain bullish on service provider revenue growth which grew 57%, though are cautious after sales and guidance came in below their estimates.
"In general, the model showed less efficiency in the quarter, and the outlook for slower margin progression implies possibly more of the same as management focuses more on growth. We continue to believe Angie's service is highly valued by Service Provider customers, and believe that cohort analysis suggests a business that is far more stable than implied by the stock. Over the coming quarters, we believe new pricing tiers for members could help stabilize the model," the analysts wrote in the report.
Canaccord estimates per-share earnings of 1 cent for fiscal 2014 and 72 cents for fiscal 2015.
Pacific Crest Securities kept the stock at "sector perform," noting that while initial 2014 outlook is disappointing, expectations going forward will be realistic. Analysts Evan Wilson and Bryan Lang point to weaker membership acquisition than expected as one of the reasons they remain cautious.