| The Knot (KNOT), which publishes materials related to weddings, reported Q3 EPS of 2c, compared with analysts' consensus estimate of 3c. The company's revenue was also lower than expected. The Knot reported that its revenue from online advertising increased 1% in Q3, compared with the same period in 2008. The company's registry services revenue was flat year-over-year but its publishing and other revenue tumbled 18%. "We continue to benefit from our recent ecommerce acquisition, which is offsetting the declines in our national online and print advertising businesses," said The KNOT CFO John Mueller. "We plan to use our cash to make acquisitions as opportunities arise, and strategic investments in product development to leverage our brands and technology and continue growing the Company over the long term," the CFO added. Kaufman Bros. responded to The Knot's results by downgrading the stock to Hold from Buy. The firm thinks The Knot's shares will probably be range-bound until the company's negotiations with Macy's are completed. Macy's has sold products on The Knot's websites. Kaufman Bros. has an $11 target on The Knot. In mid-morning trading, The Knot fell $1.04, or 9.96%, to $9.40. :theflyonthewall.com |
