NEW YORK (TheStreet) -- Shares of HomeAway (AWAY) were falling 12.6% to $29.50 Wednesday after the vacation rental company guided below analysts' estimates for the fourth quarter, and despite its third-quarter results which beat estimates.
The company said it expects revenue of $107 million to $109 million for the fourth quarter, below analysts' estimates of $112.14 million for the quarter.
HomeAway reported earnings of 20 cents a share for the third quarter, beating the 16 cents a share analysts surveyed by Thomson Reuters expected for the quarter. Revenue grew 29.9% year over year to $117.11 million, above analysts' estimates of $115.94 million for the quarter.
TheStreet Ratings team rates HOMEAWAY INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HOMEAWAY INC (AWAY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity."
You can view the full analysis from the report here: AWAY Ratings Report