ANGI Homeservices Keeps its Focus on the Long-Term
ANGI Homeservices (NASDAQ: ANGI) slid after the home-improvement marketplace largely missed estimates in its fourth-quarter earnings report.
The company, which owns home improvement sites including HomeAdvisor, Angie's List, and Handy, said that revenue from continuing operations rose 19% to $321.5 million, but missed analyst expectations at $329 million. Its online marketplace, which is made up of HomeAdvisor and Handy, grew revenue 23%, while Angie's List returned to growth with the advertising segment increasing revenue 10%.
On the cost side, ANGI stepped up its strategic marketing investments as marketing spending rose 32.7% to $166.2 million, taking up more than half of its revenue. As a result, adjusted earnings per share fell from $0.07 to break-even, which matched the analyst consensus.
Source Fool.com
