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Can MaxPoint (MXPT) Sustain the Earnings Momentum in Q2?
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Internet software firm MaxPoint Interactive, Inc. is scheduled to report second-quarter 2016 results after the closing bell on Aug 10.
The company, which went public in early Mar 2015, recorded a positive earnings surprise of 4.1% in the last reported quarter. MaxPoint has managed to beat earnings estimates on all occasions in the trailing four quarters, posting an average positive earnings surprise of 25.8%. Let’s see how things are shaping up for this announcement.
Key Factors in the Second Quarter
MaxPoint continues to focus on its strategic initiatives to fuel its growth momentum. These include expanding accessibility of its data and intelligence for wider seamless acceptance, product enhancement and integration with customers and international expansion. MaxPoint’s data intelligence has been made more accessible through collaboration with various marketing platforms and teams. The company has also made significant progress to further integrate data with a large enterprise software provider and data services firm. In addition, MaxPoint has strengthened its footprint in Europe with the expansion of Digital Zip technology in France, Germany, Italy and Spain.
The proprietary Digital Zip technology and the MaxPoint Intelligence Platform give it a distinctive advantage in the highly competitive landscape, setting it apart from its peers. It helps to draw sales by predicting the most likely local buyers of a particular product at a specific retail location and then targeting cross-channel digital marketing programs at these buyers.
MaxPoint’s hyper-local platform along with customized store-level sales and inventory system is likely to augment digital advertising and campaign measurement capabilities. In addition, ongoing signals and alerts including store-level attributes, stock data and exception reports to the CPG (consumer packaged goods) companies are likely to result in actionable inputs to further improve store profitability.
Despite the growing demands for digital advertising services and cloud-based software service, MaxPoint functions in a highly competitive and fragmented industry. Thus, the company has to be on par with its competitors, which may call for higher expenses relating to research and development. In turn, these expenses are expected to shrink the company’s profits.
In addition, as the European economy is highly unpredictable post the Brexit referendum, it becomes difficult for the company to increase revenues and reduce costs. In addition, MaxPoint is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering the productivity of the company.
Earnings Whispers
Our proven model does not conclusively show that MaxPoint is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for a successful earnings beat. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is currently pegged at 0.00%.
Zacks Rank: MaxPoint’s Zacks Rank #3 when combined with 0.00% ESP makes an earnings beat uncertain. We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Parkway Properties Inc. has an Earnings ESP of +6.45% and a Zacks Rank #3.
AerCap Holdings N.V. (AER - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #2.
Sun Life Financial Inc. (SLF - Free Report) has an earnings ESP of +1.47% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Can MaxPoint (MXPT) Sustain the Earnings Momentum in Q2?
Internet software firm MaxPoint Interactive, Inc. is scheduled to report second-quarter 2016 results after the closing bell on Aug 10.
The company, which went public in early Mar 2015, recorded a positive earnings surprise of 4.1% in the last reported quarter. MaxPoint has managed to beat earnings estimates on all occasions in the trailing four quarters, posting an average positive earnings surprise of 25.8%. Let’s see how things are shaping up for this announcement.
Key Factors in the Second Quarter
MaxPoint continues to focus on its strategic initiatives to fuel its growth momentum. These include expanding accessibility of its data and intelligence for wider seamless acceptance, product enhancement and integration with customers and international expansion. MaxPoint’s data intelligence has been made more accessible through collaboration with various marketing platforms and teams. The company has also made significant progress to further integrate data with a large enterprise software provider and data services firm. In addition, MaxPoint has strengthened its footprint in Europe with the expansion of Digital Zip technology in France, Germany, Italy and Spain.
The proprietary Digital Zip technology and the MaxPoint Intelligence Platform give it a distinctive advantage in the highly competitive landscape, setting it apart from its peers. It helps to draw sales by predicting the most likely local buyers of a particular product at a specific retail location and then targeting cross-channel digital marketing programs at these buyers.
MaxPoint’s hyper-local platform along with customized store-level sales and inventory system is likely to augment digital advertising and campaign measurement capabilities. In addition, ongoing signals and alerts including store-level attributes, stock data and exception reports to the CPG (consumer packaged goods) companies are likely to result in actionable inputs to further improve store profitability.
MAXPOINT INTER Price and EPS Surprise
MAXPOINT INTER Price and EPS Surprise | MAXPOINT INTER Quote
Despite the growing demands for digital advertising services and cloud-based software service, MaxPoint functions in a highly competitive and fragmented industry. Thus, the company has to be on par with its competitors, which may call for higher expenses relating to research and development. In turn, these expenses are expected to shrink the company’s profits.
In addition, as the European economy is highly unpredictable post the Brexit referendum, it becomes difficult for the company to increase revenues and reduce costs. In addition, MaxPoint is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering the productivity of the company.
Earnings Whispers
Our proven model does not conclusively show that MaxPoint is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for a successful earnings beat. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is currently pegged at 0.00%.
Zacks Rank: MaxPoint’s Zacks Rank #3 when combined with 0.00% ESP makes an earnings beat uncertain. We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Parkway Properties Inc. has an Earnings ESP of +6.45% and a Zacks Rank #3.
AerCap Holdings N.V. (AER - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #2.
Sun Life Financial Inc. (SLF - Free Report) has an earnings ESP of +1.47% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>