Match Group’s stock slumps 8% on flat revenue, weak guidance

Shares of Match Group Inc.
MTCH,
+1.65%
dropped 8% in extended trading Tuesday after the online-dating service reported quarterly results that included weak revenue guidance. Match reported fiscal third-quarter net earnings of $163.8 million, or 57 cents a share, compared with net earnings of $128.3 million, or 44 cents a share, in the year-ago quarter. Revenue was $881.6 million, up 9% from $809.5 million a year ago. Analysts surveyed by FactSet had expected on average net earnings of 54 cents a share on revenue of $880 million. Match Group projected fourth-quarter sales of between $855 million and $865 million, short of the $894 million forecast by FactSet analysts. Shares of Match have fallen 17% this year, while the broader S&P 500 index has increased 9%. In a letter to shareholders, Match Group said it had reached a binding term sheet with Alphabet Inc.’s
GOOGL,
-0.31%

GOOG,
-0.36%
Google for a settlement regarding their claims against each other in a legal battle.