RetailMeNot Marked Down After Q2 Miss, Lower Guidance

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

RetailMeNot Inc SALE shares were trading sharply lower by $4.76 (34 percent) at $9.35 in Wednesday's session. The coupon and promo code distributor for thousands of online stores came in well shy for Q2 EPS ($0.09 vs. $0.14 estimates) on lower sales ($53.2 million vs. $57.42 million).

The company also guided the Street lower for Q3 sales ($47.5-$50 million vs. $62.9 million estimates) and FY 2015 sales ($231-$239 million vs. $280.6 million).

The issue, which debuted in August 2013, bottomed in December 2013 at $25.51 and peaked three months later in February 2014 at $48.73. Since reaching that elevated level, it has been all downhill.

After ending Tuesday's session at $14.11, it opened way below its former all-time low ($13.25) at $9.53 and managed a $1 pop to $10.50 before caving to $9.08. Since reaching that depressed level, it found intra-day resistance at $9.75 and was drifting back towards the low for the day.

It appears everyone that wants out is selling out in today's session. So far, 3.4 million shares have traded compared with its 20-day average of 512,000 with less than three hours remaining in the session.