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Peek into E-commerce Q2 Earnings on Aug 4: PCLN, TVPT & More

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We are in the thick of the second-quarter earnings season, with as many as 1000 companies, including 116 S&P 500 members, scheduled to post their financial numbers this week. By the end of next week, we will have seen Q2 results from more than 87% of the index members.

Results till now have shown a modest improvement from the extremely weak levels over the last couple of quarters. However, growth is still elusive, with Q2 likely to be the fifth quarter in a row of earnings decline for the S&P 500 index.

As of Friday, Jul 29, we saw Q2 results from 317 S&P 500 members that together account for 73.5% of the index’s total market capitalization. Total earnings for these members are down 3.3% from the same period last year on 0.9% lower revenues, with 72.9% beating EPS estimates and 53.6% coming ahead of top-line expectations.

Coming to the technology sector, we now have results from 84.6% of the sector’s total market cap in the index. The results here are so far better than expected. Still, total earnings in this sector are down 0.9% from the same period last year even as revenues have improved2.1%.The beat ratio is impressive, with 83.3% exceedingEPS estimates and 77.8% surpassing revenue expectations.(Read more: Q2 Earnings Trends Already Established)

E-commerce is one of the most important components of the technology sector. The online trend continues to gather steam as the younger generation is rapidly adapting to fast-advancing technology. Also, improvements in the mobile device segment have led the online companies to deliver strong numbers.

Among the companies slated to come up with second-quarter results this week, let’s see what’s in store for these four major e-commerce stocks. These are all scheduled to report on Thursday, Aug 4.

The Priceline Group Inc.

Last quarter, Priceline recorded a positive earnings surprise of 7.33%. Also, Priceline outperformed the Zacks Consensus Estimate in each of the last four quarters, with an average positive surprise of 4.73%.

Notably, our proven model does not conclusively show that Priceline is likely to beat the Zacks Consensus Estimate 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. Unfortunately, that is not the case here as elaborated below:

For the second quarter, Priceline has an Earnings ESP of -0.35% as the Most Accurate estimate stands at $11.50 and the Zacks Consensus Estimate is pegged at $11.54. Meanwhile, the company has a Zacks Rank #3, which increases the predictive power of ESP. However, a negative ESP makes surprise prediction difficult. (Read more: Priceline Stock 2Q Earnings Preview: Beat or Miss?)

PRICELINE.COM Price and EPS Surprise

PRICELINE.COM Price and EPS Surprise | PRICELINE.COM Quote

Travelport Worldwide Limited

Travelport recorded a positive earnings surprise of 13.33% last quarter. Also, Travelport outperformed the Zacks Consensus Estimate in each of the last four quarters, with an average positive surprise of 35.84%.

For the second quarter, Travelport has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 23 cents. The company has a Zacks Rank #3, which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.

TRAVELPORT WWD Price and EPS Surprise

TRAVELPORT WWD Price and EPS Surprise | TRAVELPORT WWD Quote

Mercadolibre, Inc. (MELI - Free Report)

Last quarter, Mercadolibre recorded a positive earnings surprise of 25.93%. Also, the company outperformed the Zacks Consensus Estimate thrice in the last four quarters, with an average positive surprise of 10.43%.

Notably, our proven model shows that Mercadolibre is likely to beat the Zacks Consensus Estimate as it has the right combination of a positive Earnings ESP and a favorable Zacks Rank.

For the second quarter, Mercadolibre has an Earnings ESP of +3.51% as the Most Accurate estimate stands at 59 cents while the Zacks Consensus Estimate is pegged at 57 cents. Also, the company has a Zacks Rank #3, which increases the predictive power of ESP.

MERCADOLIBRE IN Price and EPS Surprise

MERCADOLIBRE IN Price and EPS Surprise | MERCADOLIBRE IN Quote

Autobytel Inc.

Autobytel recorded a negative earnings surprise of 50.00% last quarter. However, the company outperformed the Zacks Consensus Estimate thrice in the last four quarters, with an average positive surprise of 24.29%.

For the second quarter, Autobytel has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 10 cents. It currently carries a Zacks Rank #3. So, we can’t say whether the company will beat estimates this time around.

AUTOBYTEL INC Price and EPS Surprise

AUTOBYTEL INC Price and EPS Surprise | AUTOBYTEL INC Quote

Stay tuned! Check back on our full write-up on earnings releases of these stocks.

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