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Are These 4 Internet Services Stocks Poised to Hit Q1 Earnings Targets?
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The Zacks Internet - Services industry is expected to have significantly benefited from the ongoing digitization, which has been boosting the demand for Internet services across the world.
Solid adoption of Software-as-a-Service or SaaS-based services, especially among small and medium-sized businesses, is likely to have benefited the performance of the industry players during the first quarter of 2024.
Moreover, the explosion of generative AI, along with the growing proliferation of Machine Learning, blockchain, Internet of Things and 5G technologies, are likely to have contributed well to the first quarter results of the Internet services companies.
An uptick in demand for e-commerce services, owing to the convenience of online shopping that these services offer, may have been a plus for Internet services stocks.
The increasing migration to cloud platforms and rising demand for cybersecurity applications are likely to have acted as tailwinds.
Increasing demand for video streaming applications, social media platforms, online learning software, video-conferencing tools and telehealth solutions is expected to have benefited the Internet service providers during the quarter under review.
However, macroeconomic uncertainties, geopolitical tensions, high inflation and unfavorable foreign exchange fluctuations are likely to have been headwinds.
Sneak Peek on a Few Upcoming Releases
Let us see how the following technology stocks are poised ahead of their first-quarter 2024 results, which are slated to be reported on May 1.
Zillow Group (ZG - Free Report) is expected to have benefited from improving visual and multimodal capabilities for better customer engagement. Strong traffic, frequent product launches and expanding Agent business are likely to have acted as key catalysts in the first quarter of 2024.
Strong demand trends for single family rentals are expected to have contributed well. Also, strong momentum across the Mortgage segment, owing to the increasing volume of purchase mortgage orientation, is likely to have been a tailwind for the company.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the first quarter, the Zacks Consensus Estimate for ZG’s revenues is pegged at $509.3 million, indicating 8.6% growth from the year-ago quarter’s actual.
The consensus estimate for earnings is pegged at 36 cents per share, indicating a 2.9% growth from the figure reported in the year-ago quarter. The estimate has increased by a penny over the past 30 days.
Upwork (UPWK - Free Report) is likely to have gained from strength across its ad products. Its simplified, flat-fee pricing structure for freelancers and other monetization strategies to expand its take rate are expected to have been a positive in the first quarter of 2024. This, in turn, is expected to have continued driving its efficiency in the Marketplace business.
Upwork’s strong momentum across its active client base, owing to improved client retention and acquisition, is likely to have contributed well. Moreover, strong traction across its Managed Services and growing demand across business organizations to hire freelance talent is expected to have aided the upcoming results. (Read More: Factors Setting the Tone for Upwork's Q1 Earnings)
Notably, Upwork has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
For the first quarter of 2024, the Zacks Consensus Estimate for revenue is currently pegged at $186.71 million, implying 16.1% growth from the year-ago period's level.
The Zacks Consensus Estimate for earnings has remained unchanged at 19 cents per share over the past 30 days. The company reported a loss of 1 cent per share.
DoorDash (DASH - Free Report) is expected to have benefited from strong momentum across its total orders, Marketplace GOV, and logistics and advertising services during the first quarter. The company’s growing grocery offerings, on the back of its expanding partner network, improved user experience and expanding DashPass adoption, are expected to have aided the grocery category’s performance.
Solid momentum across domestic and international markets is likely to have expanded the monthly active user base. This, in turn, is expected to have aided DASH’s top-line growth in the to-be-reported quarter. (Read More: DoorDash to Report Q1 Earnings: What's in Store?)
Notably, DoorDash has an Earnings ESP of +260.98% and a Zacks Rank #2 at present.
For the first quarter, the Zacks Consensus Estimate for the top line is currently pegged at $2.45 billion, suggesting a 20.6% increase year over year.
The consensus mark for loss stands at 7 cents per share, which remains unchanged in the past 30 days. DASH reported a loss of 41 cents per share in the year-ago quarter.
Etsy (ETSY - Free Report) is expected to have benefited from solid momentum across active buyers and sellers. Strength in the company’s Reverb and Depop businesses are likely to have acted as tailwinds.
However, macroeconomic uncertainties and ongoing geopolitical conflicts are expected to have negatively impacted consumer discretionary product spending during the quarter under review. This, in turn, is likely to have hindered gross merchandise sales during the first quarter. (Read More: ETSY Gears Up to Report Q1 Earnings: What's in the Cards?)
Etsy has an Earnings ESP of -7.48% and a Zacks Rank #3 at present
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $648.32 million, indicating an improvement of 1.2% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 49 cents per share, suggesting a decline of 7.6% from the prior-year quarter’s actuals. This figure has remained unchanged over the past 30 days.
Image: Bigstock
Are These 4 Internet Services Stocks Poised to Hit Q1 Earnings Targets?
The Zacks Internet - Services industry is expected to have significantly benefited from the ongoing digitization, which has been boosting the demand for Internet services across the world.
Solid adoption of Software-as-a-Service or SaaS-based services, especially among small and medium-sized businesses, is likely to have benefited the performance of the industry players during the first quarter of 2024.
Moreover, the explosion of generative AI, along with the growing proliferation of Machine Learning, blockchain, Internet of Things and 5G technologies, are likely to have contributed well to the first quarter results of the Internet services companies.
An uptick in demand for e-commerce services, owing to the convenience of online shopping that these services offer, may have been a plus for Internet services stocks.
The increasing migration to cloud platforms and rising demand for cybersecurity applications are likely to have acted as tailwinds.
Increasing demand for video streaming applications, social media platforms, online learning software, video-conferencing tools and telehealth solutions is expected to have benefited the Internet service providers during the quarter under review.
However, macroeconomic uncertainties, geopolitical tensions, high inflation and unfavorable foreign exchange fluctuations are likely to have been headwinds.
Sneak Peek on a Few Upcoming Releases
Let us see how the following technology stocks are poised ahead of their first-quarter 2024 results, which are slated to be reported on May 1.
Zillow Group (ZG - Free Report) is expected to have benefited from improving visual and multimodal capabilities for better customer engagement. Strong traffic, frequent product launches and expanding Agent business are likely to have acted as key catalysts in the first quarter of 2024.
Strong demand trends for single family rentals are expected to have contributed well. Also, strong momentum across the Mortgage segment, owing to the increasing volume of purchase mortgage orientation, is likely to have been a tailwind for the company.
Notably, Zillow Group has an Earnings ESP of 5.56% and flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the first quarter, the Zacks Consensus Estimate for ZG’s revenues is pegged at $509.3 million, indicating 8.6% growth from the year-ago quarter’s actual.
The consensus estimate for earnings is pegged at 36 cents per share, indicating a 2.9% growth from the figure reported in the year-ago quarter. The estimate has increased by a penny over the past 30 days.
Zillow Group, Inc. Price and EPS Surprise
Zillow Group, Inc. price-eps-surprise | Zillow Group, Inc. Quote
Upwork (UPWK - Free Report) is likely to have gained from strength across its ad products. Its simplified, flat-fee pricing structure for freelancers and other monetization strategies to expand its take rate are expected to have been a positive in the first quarter of 2024. This, in turn, is expected to have continued driving its efficiency in the Marketplace business.
Upwork’s strong momentum across its active client base, owing to improved client retention and acquisition, is likely to have contributed well. Moreover, strong traction across its Managed Services and growing demand across business organizations to hire freelance talent is expected to have aided the upcoming results. (Read More: Factors Setting the Tone for Upwork's Q1 Earnings)
Notably, Upwork has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
For the first quarter of 2024, the Zacks Consensus Estimate for revenue is currently pegged at $186.71 million, implying 16.1% growth from the year-ago period's level.
The Zacks Consensus Estimate for earnings has remained unchanged at 19 cents per share over the past 30 days. The company reported a loss of 1 cent per share.
Upwork Inc. Price and EPS Surprise
Upwork Inc. price-eps-surprise | Upwork Inc. Quote
DoorDash (DASH - Free Report) is expected to have benefited from strong momentum across its total orders, Marketplace GOV, and logistics and advertising services during the first quarter. The company’s growing grocery offerings, on the back of its expanding partner network, improved user experience and expanding DashPass adoption, are expected to have aided the grocery category’s performance.
Solid momentum across domestic and international markets is likely to have expanded the monthly active user base. This, in turn, is expected to have aided DASH’s top-line growth in the to-be-reported quarter. (Read More: DoorDash to Report Q1 Earnings: What's in Store?)
Notably, DoorDash has an Earnings ESP of +260.98% and a Zacks Rank #2 at present.
For the first quarter, the Zacks Consensus Estimate for the top line is currently pegged at $2.45 billion, suggesting a 20.6% increase year over year.
The consensus mark for loss stands at 7 cents per share, which remains unchanged in the past 30 days. DASH reported a loss of 41 cents per share in the year-ago quarter.
DoorDash, Inc. Price and EPS Surprise
DoorDash, Inc. price-eps-surprise | DoorDash, Inc. Quote
Etsy (ETSY - Free Report) is expected to have benefited from solid momentum across active buyers and sellers. Strength in the company’s Reverb and Depop businesses are likely to have acted as tailwinds.
However, macroeconomic uncertainties and ongoing geopolitical conflicts are expected to have negatively impacted consumer discretionary product spending during the quarter under review. This, in turn, is likely to have hindered gross merchandise sales during the first quarter. (Read More: ETSY Gears Up to Report Q1 Earnings: What's in the Cards?)
Etsy has an Earnings ESP of -7.48% and a Zacks Rank #3 at present
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $648.32 million, indicating an improvement of 1.2% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 49 cents per share, suggesting a decline of 7.6% from the prior-year quarter’s actuals. This figure has remained unchanged over the past 30 days.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.