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E-Commerce Stocks Reporting Q3 Earnings on Oct 26: CNV, GRPN
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With more than 800 companies set to report results this week, including 171 S&P 500 members, the earnings season is rapidly gaining momentum. Notably, after consecutive five quarters of decline, earnings are now anticipated to show positive growth.
As per the latest Zacks Earnings Preview report, overall third-quarter earnings for S&P 500 companies are anticipated to inch up 0.1% (as compared with an earlier estimate of -1%) from the year-ago quarter on revenues that are estimated to increase 1.5%.
The growth is expected to be driven by impressive results from the Finance sector, which is anticipated to mitigate sluggish growth from the Energy, Autos and Transportation sectors.
However, growth from Technology - another large sector in the list - is estimated to remain muted due to lower earnings anticipation from Apple (AAPL - Free Report) . Earnings for the Technology sector are now anticipated to be up 1.1% based on 1% lower revenues. Excluding Apple, earnings are estimated to grow 6.4%.
E-Commerce is an important component of the technology sector and is expected follow the same earnings growth trajectory in the quarter. Here, we take a look at two e-commerce companies set to report earnings on Oct 26:
This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Nevertheless, Groupon’s new business strategy that focuses on marketing, international and shopping appears to be working for the company. Its performance has started to improve since the last few quarters after CEO Rich Williams took charge at the helm.
We note that Groupon’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 62.32%.
Cnova N.V. is also unlikely to beat third-quarter 2016 earnings estimates as it has a Zacks Rank #3 but an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
We also note that Cnova’s results have missed the Zacks Consensus Estimate in the last four quarters, with an average of 999.17%.
Recently, Cnova announced gross merchandise value (GMV), net sales and other operating data for the third-quarter 2016. GMV surged 6% to €681 million, while net sales were up 3% to €414 million.
Active customers were 7.9 million, up 12% in the quarter. Traffic was roughly 193 million, up 6% from the year-ago quarter. Notably, mobile traffic increased 435 basis points to 54%, which is positive in our view. Orders increased 18.8% while the number of items sold grew 19.9% in the quarter.
The unaudited sales results do not include Cnova Brazil financials. Notably, in August, the company announced that it has entered in reorganization agreement with Via Varejo S.A. related to Cnova Brazil.
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E-Commerce Stocks Reporting Q3 Earnings on Oct 26: CNV, GRPN
With more than 800 companies set to report results this week, including 171 S&P 500 members, the earnings season is rapidly gaining momentum. Notably, after consecutive five quarters of decline, earnings are now anticipated to show positive growth.
As per the latest Zacks Earnings Preview report, overall third-quarter earnings for S&P 500 companies are anticipated to inch up 0.1% (as compared with an earlier estimate of -1%) from the year-ago quarter on revenues that are estimated to increase 1.5%.
The growth is expected to be driven by impressive results from the Finance sector, which is anticipated to mitigate sluggish growth from the Energy, Autos and Transportation sectors.
However, growth from Technology - another large sector in the list - is estimated to remain muted due to lower earnings anticipation from Apple (AAPL - Free Report) . Earnings for the Technology sector are now anticipated to be up 1.1% based on 1% lower revenues. Excluding Apple, earnings are estimated to grow 6.4%.
E-Commerce is an important component of the technology sector and is expected follow the same earnings growth trajectory in the quarter. Here, we take a look at two e-commerce companies set to report earnings on Oct 26:
Groupon Inc. (GRPN - Free Report) sports a Zacks Rank #1 (Strong Buy) but is unlikely to beat third-quarter 2016 earnings estimates as it has an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.
This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Nevertheless, Groupon’s new business strategy that focuses on marketing, international and shopping appears to be working for the company. Its performance has started to improve since the last few quarters after CEO Rich Williams took charge at the helm.
We note that Groupon’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 62.32%.
GROUPON INC Price and EPS Surprise
GROUPON INC Price and EPS Surprise | GROUPON INC Quote
However, the company is investing quite a bit in the transition, which is expected to affect its near-term financials. (Read More: Groupon: Will it Spring a Surprise in Q3 Earnings?)
Cnova N.V. is also unlikely to beat third-quarter 2016 earnings estimates as it has a Zacks Rank #3 but an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
We also note that Cnova’s results have missed the Zacks Consensus Estimate in the last four quarters, with an average of 999.17%.
CNOVA NV Price and EPS Surprise
CNOVA NV Price and EPS Surprise | CNOVA NV Quote
Recently, Cnova announced gross merchandise value (GMV), net sales and other operating data for the third-quarter 2016. GMV surged 6% to €681 million, while net sales were up 3% to €414 million.
Active customers were 7.9 million, up 12% in the quarter. Traffic was roughly 193 million, up 6% from the year-ago quarter. Notably, mobile traffic increased 435 basis points to 54%, which is positive in our view. Orders increased 18.8% while the number of items sold grew 19.9% in the quarter.
The unaudited sales results do not include Cnova Brazil financials. Notably, in August, the company announced that it has entered in reorganization agreement with Via Varejo S.A. related to Cnova Brazil.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>.