Yandex Tumbles Most in Eight Weeks on Slowing Growth Outlook
Yandex NV (YNDX), Russia’s biggest Internet search engine, fell the most in eight weeks in New York trading after the company reiterated its annual outlook for the slowest pace of revenue growth since 2010.
Yandex tumbled 6.8 percent to $19.42 at 2:33 p.m., headed for the biggest slump since June 1. The retreat led declines on the Bloomberg Russia-US Equity Index (RUS14BN) of the most-traded Russian companies listed in the U.S. The measure sank 2 percent to 90.10.
The company reiterated its forecast for a 40 percent to 45 percent revenue growth in 2012, Alexander Shulgin, the chief financial officer, said at a conference call with analysts and investors today. Yandex said sales increased 60 percent last year. Facebook Inc., the world’s largest social-networking service, reported last week second-quarter earnings that showed slowing growth.
“Some have expected Yandex would revise its 2012 revenue growth forecast,” Iouli Matevossov, a senior analyst at Alfa Bank, said by phone from Moscow. Investors were expecting “results would exceed analysts’ estimates. The sentiment on the industry remains negative following disappointing Facebook results,” he said.
Yandex said that second-quarter net income, before adjustments to additional taxes, rose 76 percent to 1.98 billion rubles ($61.5 million). Revenue expanded 50 percent in the first half of the year from the same period a year ago.
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