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Demand Media (DMD): What's in Store this Earnings Season?
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Demand Media Inc. is set to report third-quarter 2016 results on Nov 7. Last quarter, the company posted a loss of 32 cents per share, narrower than the Zacks Consensus Estimate of a loss of 43 cents.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Headquartered in Santa Monica, CA, Demand Media operates as a media company offering two distinct but complementary services: Content & Media, and Registrar. The company uses an Internet-based model to identify, create, distribute and monetize in-demand, long-lived content. It deploys its proprietary Content & Media platform to Demand Media’s owned and operated websites.
The company’s enriched product portfolio is expected to drive its top and bottom line performances in the to-be reported quarter. Moreover, Demand Media is coming up with customized products to cater to new customers and gain traction in the markets.
Additionally, synergies from acquisitions and product innovations continue to drive growth. Also, revenue addition from the Saatchi Art acquisition will support the company’s top line.
Nonetheless, a decline in traffic at eHow and the impact of divesting CoveritLive and Pluck social media businesses are expected to affect the company’s results.
Earnings Whispers
Our proven model does not conclusively show that Demand Media is likely to beat 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. That is not the case here, as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 51 cents per share. Hence, the difference is 0.00%.
Zacks Rank: Demand Media currently has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
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.
Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Asure Software Inc. (ASUR - Free Report) , with an Earnings ESP of +14.29% and a Zacks Rank #3.
TubeMogul, Inc. , with an Earnings ESP of +8.00% and a Zacks Rank #3.
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Demand Media (DMD): What's in Store this Earnings Season?
Demand Media Inc. is set to report third-quarter 2016 results on Nov 7. Last quarter, the company posted a loss of 32 cents per share, narrower than the Zacks Consensus Estimate of a loss of 43 cents.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Headquartered in Santa Monica, CA, Demand Media operates as a media company offering two distinct but complementary services: Content & Media, and Registrar. The company uses an Internet-based model to identify, create, distribute and monetize in-demand, long-lived content. It deploys its proprietary Content & Media platform to Demand Media’s owned and operated websites.
The company’s enriched product portfolio is expected to drive its top and bottom line performances in the to-be reported quarter. Moreover, Demand Media is coming up with customized products to cater to new customers and gain traction in the markets.
Additionally, synergies from acquisitions and product innovations continue to drive growth. Also, revenue addition from the Saatchi Art acquisition will support the company’s top line.
Nonetheless, a decline in traffic at eHow and the impact of divesting CoveritLive and Pluck social media businesses are expected to affect the company’s results.
Earnings Whispers
Our proven model does not conclusively show that Demand Media is likely to beat 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. That is not the case here, as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 51 cents per share. Hence, the difference is 0.00%.
Zacks Rank: Demand Media currently has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
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.
DEMAND MEDIA Price and EPS Surprise
DEMAND MEDIA Price and EPS Surprise | DEMAND MEDIA Quote
Stocks to Consider
Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Stratasys Ltd. (SSYS - Free Report) , with an Earnings ESP of +41.67% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software Inc. (ASUR - Free Report) , with an Earnings ESP of +14.29% and a Zacks Rank #3.
TubeMogul, Inc. , with an Earnings ESP of +8.00% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>