HouseValues stock tumbles 28.1 percent

Kirkland-based HouseValues' stock got slammed today, one day after the Kirkland company forecasted 2006 financial results that were far below Wall Street expectations.

Shares of the online real-estate services company sank $3.79, or 28.1 percent, closing at $9.71 on trading volume almost 10 times the recent daily average.

In its fourth-quarter earnings release Tuesday, the company said its revenue this year would come in between $105 million and $115 million, and earnings per share would be between 24 and 30 cents a share.

Wall Street analysts on average had been expecting a 2006 profit of 69 cents a share on $130 million in revenue.

HouseValues said it plans to make "significant investments" in two new businesses, HomePages and The Loan Page. The company's forecast also includes the cost of expensing stock options, estimated at 12 cents a share.