We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Yelp (YELP) Q4 Earnings to Gain on Local Content Strength
Read MoreHide Full Article
Yelp Inc. (YELP - Free Report) is set to report fourth-quarter 2017 results on Feb 7. The company’s earnings have beaten the Zack Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 675%.
In the last quarter, the company reported earnings of 9 cents per share against the Zacks Consensus Estimate of a loss of a penny. Revenues increased 19% year over year to $222.4 million and beat the Zacks Consensus Estimate of $221 million.
For fourth-quarter 2017, total revenues are expected between $211 million and $216 million. Moreover, adjusted EBITDA is projected between $39 million and $42 million.
Let’s see how things are shaping up for this announcement.
Yelp is benefiting from the growing total addressable market (TAM), expanding mobile reach, high quality content and improving user engagement. We believe that growth in cumulative reviews — up 23% year over year to 142 million in the third quarter — reflects expanding local content, which is a significant driver.
Additionally, accelerating consumer traffic across app and mobile is a positive. Last quarter, app unique devices rose 21% year over year to almost 30 million.
Moreover, the partnership with GrubHub is a key catalyst. The collaboration increases the number of delivery and takeout restaurants available for food ordering on the platform.
This is likely to boost user base, which will drive advertising and transaction revenues for the platform. Moreover, management expects the partnership to improve Yelp's per-order profitability. In the last quarter, paying advertising accounts improved 18% year over year to almost 155,000.
Further, acquisitions of Nowait and Turnstyle present significant growth opportunity. The takeovers boost Yelp’s connection with business owners. Notably, consumer-friendly services like reservations, waitlist and Wi-Fi marketing along with Yelp transaction platform, cash back and Request a Quote is likely to drive subscriptions in the soon-to-be-reported quarter.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Yelp has a Zacks Rank #3 and an Earnings ESP of +11.43%. Therefore, our proven model shows that the company is likely to deliver a positive surprise this quarter.
Stocks That Warrant a Look
Here are two stocks that you may want to consider as our model shows these have the right combination of elements to deliver an earnings beat in the upcoming release.
Activision Blizzard has an Earnings ESP of +4.99% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Yelp (YELP) Q4 Earnings to Gain on Local Content Strength
Yelp Inc. (YELP - Free Report) is set to report fourth-quarter 2017 results on Feb 7. The company’s earnings have beaten the Zack Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 675%.
In the last quarter, the company reported earnings of 9 cents per share against the Zacks Consensus Estimate of a loss of a penny. Revenues increased 19% year over year to $222.4 million and beat the Zacks Consensus Estimate of $221 million.
For fourth-quarter 2017, total revenues are expected between $211 million and $216 million. Moreover, adjusted EBITDA is projected between $39 million and $42 million.
Let’s see how things are shaping up for this announcement.
Yelp Inc. Price and EPS Surprise
Yelp Inc. Price and EPS Surprise | Yelp Inc. Quote
Key Factors
Yelp is benefiting from the growing total addressable market (TAM), expanding mobile reach, high quality content and improving user engagement. We believe that growth in cumulative reviews — up 23% year over year to 142 million in the third quarter — reflects expanding local content, which is a significant driver.
Additionally, accelerating consumer traffic across app and mobile is a positive. Last quarter, app unique devices rose 21% year over year to almost 30 million.
Moreover, the partnership with GrubHub is a key catalyst. The collaboration increases the number of delivery and takeout restaurants available for food ordering on the platform.
This is likely to boost user base, which will drive advertising and transaction revenues for the platform. Moreover, management expects the partnership to improve Yelp's per-order profitability. In the last quarter, paying advertising accounts improved 18% year over year to almost 155,000.
Further, acquisitions of Nowait and Turnstyle present significant growth opportunity. The takeovers boost Yelp’s connection with business owners. Notably, consumer-friendly services like reservations, waitlist and Wi-Fi marketing along with Yelp transaction platform, cash back and Request a Quote is likely to drive subscriptions in the soon-to-be-reported quarter.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Yelp has a Zacks Rank #3 and an Earnings ESP of +11.43%. Therefore, our proven model shows that the company is likely to deliver a positive surprise this quarter.
Stocks That Warrant a Look
Here are two stocks that you may want to consider as our model shows these have the right combination of elements to deliver an earnings beat in the upcoming release.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +6.87% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Activision Blizzard has an Earnings ESP of +4.99% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>