E-mail list development and management firm NetCreations’ stock plunged more than 38 percent yesterday on news that its third-quarter earnings would be lower than expected.
The company’s stock closed at $12, dropping $8.88 from Monday’s close of $20.88. The price drop coincided with an announcement that NetCreations’ third-quarter net revenues would be between $14 million and $15 million and that its net income would come in at 4 cents to 6 cents per share. Analysts forecasted the company’s third-quarter income would be 11 cents per share, according to news reports.
The company cited an industry downturn for the shortfall.
“The third quarter has been a difficult one for Internet advertising companies, and NetCreations is no exception,” chairwoman/CEO Rosalind Resnick said in a prepared statement. “Our revenues and earnings have been adversely affected by the decline in marketing-related expenses associated with our business-to-consumer dot-com customers as they are being forced to operate within increasingly tighter budgets in order to attain profitability.”
NetCreations officials were not immediately available for comment. The company went public in November 1999 and debuted at $13 a share. It saw a 52-week-high of $69.75 in the spring, and even as recently as early July, its stock topped $50 a share.
In other news, the company announced yesterday that it has named Robert Mattes its new chief financial officer. Mattes joined NetCreations in April as its vice president of finance and controller. He fills a spot that has been vacant since the July resignation of former CFO Gary Sindler.