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Quotient Technology (QUOT) Q2 Earnings: What's in Store?

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Quotient Technology Inc. (QUOT - Free Report) is set to report second-quarter 2017 results on Aug 1. The company boasts a solid earnings track record, having beaten estimates in each of the trailing four quarters, delivering an average positive surprise of 60.83%.

Last quarter, the company reported a loss of 4 cents per share, narrower than the Zacks Consensus Estimate of a loss of 6 cents.  Revenues increased 10% year over year to $72.6 million and beat the Zacks Consensus Estimate of $72 million.

For second-quarter 2017, the company expects total revenue to be in the range of $72-$75 million. However, the figure doesn’t reflect any contribution from the Crisp acquisition, which took place in the latter half of the second quarter.

Notably, Quotient has gained 8.4% year to date, substantially underperforming the 36.4% rally of the industry it belongs to.



Let's see how things are shaping up for this announcement.

Factors at Play

Quotient is one of the pioneers in providing digital promotion and media platform, which connects brands, retailers and consumers. The company is riding on the growing demand for digital coupons. The company’s Coupons.com app has won several awards in the second quarter, which reflects its growing clout among shoppers.

Moreover, Quotient’s Retailer iQ platform has been doing remarkably well as more retailers and brands are choosing it in order to drive their digital marketing activities.  The company, with its focus on data, mobile and shopper marketing, seems to have a competitive advantage in this regard.

Additionally, Quotient has significant growth opportunities as the CPG brands are shifting their focus away from paper to digital. The company’s data driven media solution Quotient Media Exchange (QMX) has also begun to deliver revenues.

However, intensifying competition is a major concern.

Earnings Whispers

Our proven model does not conclusively show that Quotient is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: Quotient’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 4 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Quotient Technology’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are a few companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming release:

Kemet Corporation (KEM - Free Report) with an Earnings ESP of +11.11% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vishay Intertechnology (VSH - Free Report) with an Earnings ESP of +6.06% and a Zacks Rank #1.

Arrow Electronics (ARW - Free Report) with an Earnings ESP of +1.13% and a Zacks Rank #2.

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