Does the phrase "bankers' hours" mean anything at all in a world of 24/7 online Internet banking? Financial data provider Bankrate (NASDAQ:RATE) doesn't cotton to the concept. It's website is open round the clock, and when it comes time to report earnings, the company's first in line at the beginning of the day. Bankrate reports Q1 2006 results tomorrow morning.

What analysts say:

• Buy, sell, or waffle? Bankrate rates three buys and two sells.
• Revenues. Analysts expect Bankrate to report 77% growth in revenues tomorrow, to $18.4 million.
• Earnings. Profits are predicted to rise 58% to $0.19 per share.

What management says:
In its February report on fiscal 2005 results, Bankrate CEO Thomas Evans pronounced 2005 a "great year." It certainly was for shareholders, who saw their stock double in price. But now it seems the company is ready to cash in some of those gains for itself.

Bankrate recently issued the kind of news that can strike terror into an investor's heart: The company and certain of its shareholders notified the SEC of their intention to sell up to $115 million worth of stock. When it happens, that kind of selling -- which amounts to 15% of the company's market cap -- can put pressure on the stock price. So you'd ordinarily expect shareholders to become nervous when they see an announcement like this. So far, it isn't happening. Bankrate shares are up 17% since the news of the potential stock sale was made public.

What management does:
Shareholders may have been willing to give the company a pass on the dilution risk, based on its performance as a business. Over the past 18 months, gross margins have slid only a little. But as the company gains scale, its operating costs aren't rising nearly as fast as its sales, and that helps to expand operating margins.

As for the net margin plunge you see below, pay it no heed. It's primarily the effect of the company having a very good Q4 2004, when it benefited from a tax credit, rather than a very bad Q4 2005.

One Fool says:
Bankrate's a very profitable business, but valued at 53 times trailing free cash flow and expected to grow earnings at "only" 25% per annum as it is, it seems pretty richly priced. The fact that the company and its inside shareholders plan to sell shares suggests that they too think the shares will be more valuable (to them) in someone else's hands. Great as the business is, think twice before deciding that you want to help them out with this.

Bank of America is a Motley Fool Income Investor selection.

Fool contributor Rich Smith does not own shares of any company named above.