Back to top

Image: Bigstock

Quotient Technology (QUOT) Q4 Earnings: What's in Store?

Read MoreHide Full Article

Quotient Technology Inc. (QUOT - Free Report) is set to report fourth-quarter 2016 results on Feb 9. Last quarter, the company posted a 50.00% positive earnings surprise. Moreover, in the last four quarters, the company delivered an average positive earnings surprise of 61.27%.

We note that Quotient Technology has outperformed the Zacks categorized Internet Software Service industry in the last one year. The company’s shares have increased an incredible 103.25% compared with the industry’s gain of 40.46% during the period.

Let’s see how things are shaping up for this announcement.

Factors at Play

Quotient Technology is one of the pioneers in providing digital promotion and media platform, which connects brands, retailers and consumers. The company is riding on the growing demand for digital coupons. Key partnerships with the likes of Samsung, Albertsons and Safeway are likely to boost its business. Moreover, the launch of Retailer iQ product will drive its transaction growth.

Additionally, Quotient has significant growth opportunities. It has entered into a partnership with interactive TV company, Ensequence to promote the brand through TV advertisements. All this is likely to boost its customer base, distribution channels and transactions.

However, macroeconomic headwinds as well as stiff competition remain major concerns.

For the fourth quarter of 2016, the company expects revenues in a range of $68 million to $71 million. Adjusted EBITDA is expected to be in a range of $6 to $7 million.

Earnings Whispers

Our proven model does not conclusively show that Quotient is likely to beat earnings 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. This is not the case here as you will see below:

Zacks ESP: Earnings ESP for Quotient is 0.00%. This is because the Most Accurate estimate and Zacks Consensus Estimate are both pegged at 6 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Quotient has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are a few companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming release:

Applied Optoelectronics Inc. (AAOI - Free Report) with an Earnings ESP of +15.87% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Activision Blizzard Inc. with an Earnings ESP of +2.78% and a Zacks Rank #3.

Pandora Media Inc. with an Earnings ESP of +10. 81% and a Zacks Rank #3.

Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today

In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Applied Optoelectronics, Inc. (AAOI) - free report >>

Quotient Technology Inc. (QUOT) - free report >>

Published in