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Yelp stock slides after the company cuts full year guidance

  • Yelp said it expects to earn less revenue than expected for the full 2017 fiscal year amid a light fourth quarter, and the stock slid
  • But third-quarter earnings were better than expected.
  • Yelp shares have risen more than 20 percent so far this year.

Yelp's stock price fell after hours on Wednesday amid a worse-than-expected financial forecast.

Yelp said it expects to earn less revenue than expected for the full 2017 fiscal year amid a light fourth quarter.

Yelp's full-year forecast calls for $839 million to $844 million in revenue. Analysts surveyed by FactSet expected a midpoint of $861.5 million. Yelp had said in August it expected revenue of $855 million to $865 million for the full year.

In the fourth quarter, Yelp expects sales of $211 million to $216 million — a FactSet estimate called for $234.3 million.

Still, the local business listing website saw double-digit growth in the third quarter for advertising revenue, transactions revenue, the number of reviews and the number of devices accessing its app, compared to last year. And third-quarter earnings were better than expected.

Yelp reported adjusted earnings of 9 cents per share on revenue of $222 million in the third quarter. Analysts polled by Thomson Reuters expected a loss of 2 cents per share on revenue of $221 million.

Yelp shares have risen more than 20 percent so far this year.