Did Investors Swipe Left on Match Group's Stock Too Soon?
Match Group's (NASDAQ: MTCH) stock recently plunged after the online dating giant followed up a solid third-quarter earnings report with soft guidance for the fourth quarter. Its revenue rose 22% annually to $541.5 million, clearing estimates by nearly $1 million, as its net income grew 16% to $151.5 million, or $0.51 per share, which beat expectations by nine cents. Its adjusted EBITDA rose 25% to $206.1 million.
However, Match's forecast for 19%-21% revenue growth in the fourth quarter slightly missed expectations for 22% growth. It didn't provide exact guidance for its EPS growth, but it expects its adjusted EBITDA to improve 17%-20%.
Those growth rates still look solid, so did investors swipe left on Tinder's parent company too soon? Let's take a closer look at the numbers to decide.
Source Fool.com
