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E-commerce Q2 Earnings to Watch on Oct 27: AMZN and EXPE
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The Q3 earnings season is in full swing, with as many as 800 companies, including 171 S&P 500 members, scheduled to post their financial numbers this week.
The third-quarter reporting cycle has kept investors glued to earnings releases in the lookout for companies that are poised to beat. The results so far have been encouraging, with companies recording better earnings and revenue growth than in the past few quarters.
The Q3 earnings season is thus on track to be the first quarter to move into the positive territory, following five back-to-back quarters of decline for the S&P 500 Index. In fact, the latest Earnings Preview report (released on Oct 21, 2016) projects a 0.1% year-over-year increase in third-quarter earnings, with revenues likely to clock 1.5% growth. We note that overall Q3 earnings for the technology sector are expected to be up 1.1% year over year on a revenue decrease of 1.0%.
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 adopting fast-advancing technology. Also, improvements in the mobile device segment have led the online companies to deliver strong numbers.
Here, we take a sneak peek into two major e-commerce providers like Amazon (AMZN - Free Report) and Expedia (EXPE - Free Report) that are lined up to report third-quarter earnings results on Oct 27:
Amazon, the world's largest Internet retailer, recorded a positive earnings surprise of 56.14% last quarter. In fact, Amazon outperformed the Zacks Consensus Estimate thrice in the last four quarters, with an average positive surprise of 90.92%.
Notably, our proven model shows that Amazon is likely to beat the Zacks Consensus Estimate as it has the right combination of a favorable Zacks Rank (Zacks Rank #3 (Hold) or better) and a positive Earnings ESP. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
The Earnings ESP for Amazon is +10.47%. This is because the Most Accurate estimate stands at 95 cents while the Zacks Consensus Estimate is pegged at 86 cents. Meanwhile, the company has a Zacks Rank #1 (Strong Buy), which increases the predictive power of ESP. Therefore, we are reasonably confident in looking for an earnings beat. (Read more: Amazon.com Q3 Earnings: Poised to Top Estimates?)
Expedia, a leading online travel companies in the world, however, is unlikely to beat third-quarter 2016 earnings estimates as it has an Earnings ESP of negative 4.91% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
We also note that Expedia missed the consensus mark in the preceding three quarters out of four, resulting in a negative average surprise of 4.01%.(Read more: What's in the Cards for Expedia in Q3 Earnings?)
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
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E-commerce Q2 Earnings to Watch on Oct 27: AMZN and EXPE
The Q3 earnings season is in full swing, with as many as 800 companies, including 171 S&P 500 members, scheduled to post their financial numbers this week.
The third-quarter reporting cycle has kept investors glued to earnings releases in the lookout for companies that are poised to beat. The results so far have been encouraging, with companies recording better earnings and revenue growth than in the past few quarters.
The Q3 earnings season is thus on track to be the first quarter to move into the positive territory, following five back-to-back quarters of decline for the S&P 500 Index. In fact, the latest Earnings Preview report (released on Oct 21, 2016) projects a 0.1% year-over-year increase in third-quarter earnings, with revenues likely to clock 1.5% growth. We note that overall Q3 earnings for the technology sector are expected to be up 1.1% year over year on a revenue decrease of 1.0%.
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 adopting fast-advancing technology. Also, improvements in the mobile device segment have led the online companies to deliver strong numbers.
Here, we take a sneak peek into two major e-commerce providers like Amazon (AMZN - Free Report) and Expedia (EXPE - Free Report) that are lined up to report third-quarter earnings results on Oct 27:
Amazon, the world's largest Internet retailer, recorded a positive earnings surprise of 56.14% last quarter. In fact, Amazon outperformed the Zacks Consensus Estimate thrice in the last four quarters, with an average positive surprise of 90.92%.
Notably, our proven model shows that Amazon is likely to beat the Zacks Consensus Estimate as it has the right combination of a favorable Zacks Rank (Zacks Rank #3 (Hold) or better) and a positive Earnings ESP. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
The Earnings ESP for Amazon is +10.47%. This is because the Most Accurate estimate stands at 95 cents while the Zacks Consensus Estimate is pegged at 86 cents. Meanwhile, the company has a Zacks Rank #1 (Strong Buy), which increases the predictive power of ESP. Therefore, we are reasonably confident in looking for an earnings beat. (Read more: Amazon.com Q3 Earnings: Poised to Top Estimates?)
AMAZON.COM INC Price and EPS Surprise
AMAZON.COM INC Price and EPS Surprise | AMAZON.COM INC Quote
Expedia, a leading online travel companies in the world, however, is unlikely to beat third-quarter 2016 earnings estimates as it has an Earnings ESP of negative 4.91% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
We also note that Expedia missed the consensus mark in the preceding three quarters out of four, resulting in a negative average surprise of 4.01%.(Read more: What's in the Cards for Expedia in Q3 Earnings?)
EXPEDIA INC Price and EPS Surprise
EXPEDIA INC Price and EPS Surprise | EXPEDIA INC Quote
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>