Who Wants to Be the Banker?

Have you noticed how hard it is to get someone to be the banker in a game of Monopoly these days?

With troubled bankers like Washington Mutual (NYSE: WM) and Wachovia (NYSE: WB) slashing their dividends and lesser banks buckling, it would seem that marketing these institutions is another losing game.

Well, don't tell that to Bankrate (Nasdaq: RATE). The financial rates publisher is more than getting by, even if its margins are a little leaner than shareholders have grown used to. Last night's second-quarter report finds the company's revenue soaring 72% to $40.2 million. Adjusted earnings of $0.33 a share is not an improvement over the $0.34 a share it scored a year ago, but it's in line with analyst estimates.

There is no need to applaud. The reason the pros nailed Bankrate's performance is that the company hosed down expectations last month. Wall Street was looking for a profit of $0.40 a share before the company talked down its prospects for the rest of the year.

The move stung. The company's new revenue and EBITDA targets -- $164 million to $169 million and $54 million to $58 million, respectively -- were respectable advances over last year's showing. However, slashing the top-line target by $3 million and the cash flow gauge by a wider $10 million translates into margin erosion.

You don't need to cry for Bankrate. It has been able to offset weakness in display advertising through other lead-generating areas like insurance, retirement, and credit cards. As strapped as the marketing budgets may be for financial services providers, obtaining quality leads by paying for hyperlinks on the Bankrate site is still a sound value proposition for the industry.

Online lead generators aren't necessarily immune from the sectors they represent. Realtor magnet HouseValues (Nasdaq: SOLD) tanked when the residential real estate market cratered. Wedding services hub The Knot (Nasdaq: KNOT) is taking a hit as penny-pinching fiancees scale back. Insurance specialist InsWeb (Nasdaq: INSW) got whacked last month, when it posted a surprising deficit in its latest quarter.

As a Motley Fool Rule Breakers recommendation, it's refreshing to see Bankrate continue to grow in popularity. The site generated 148 million page views during the period, a 9% gain over last year's traffic. The healthier top-line advance shows that Bankrate is milking more monetization power out of every page it delivers. That's good stuff, though Bankrate investors will want to keep an eye on other industry trends. Banks like IndyMac folding may be a near-term catalyst for traffic to its website by alternative-seeking consumers, but if a weakening economy digs deeper into credit card companies and forces customers into withdrawal mode, Bankrate may hit a few more bumps down the road.

More on Bankrate:

• Oh, No, Bankrate Is Mortal
• Two Guys Hold Up the Bankrate
• Should You Buy More Stocks?