Shares of online-advertising company ValueClick traded lower Tuesday after it announced it expects sales to be on the lower end of projections for the third-quarter and cut its full-year sales outlook. The company sees revenues coming in between $156 million and $157 million, instead of the previously projected $155 million-$165 million. According to Thomson, analysts were looking for $159 million. ValueClick lowered its full-year sales guidance to $635 million-$640 million, compared to previous guidance of $645 million-$660 million. Analysts had been expecting yearly sales of $649.6 million. Over the last month, the company's stock has increased 40% on bullishness in the sector and speculation the company could be a takeover target. ValueClick blamed the poor guidance on the disappointing performance of its lead generation business. Sandeep Aggar, an analyst at Oppenheimer, said he does not think the current weakness will put off prospective buyers, and that the lead generation business has been an on-going problem. ValueClick shares were down 10.3% to $24.93 in midday trading Tuesday.
Commentary: ValueClick Rises As Takeover Rumors Persist • ValueClick Projected Buyout Value
Stocks to watch: VCLK. Competitors: GOOG, YHOO. ETFs: HHH, FDN
Earnings call transcript: ValueClick Q2 2007