We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Yelp (YELP) Q4 Earnings: What's in the Cards this Time?
Read MoreHide Full Article
Yelp Inc. (YELP - Free Report) is set to report fourth-quarter 2016 results on Feb 9. Though in the last quarter, the company posted a 200.00% positive earnings surprise, it has an average four-quarter negative earnings surprise of 142.86%.
Let’s see how things are shaping up for this quarter.
Factors to Consider
Yelp delivered strong results in the third quarter, surpassing both top- and bottom-line expectations on the back of significant improvement in cumulative reviews and local advertising accounts. Nearly 70% of the paid reviews came from Yelp’s mobile app, per management. Given its strong results, management had raised its revenue expectations for the fiscal.
However, Yelp’s international business has been a dampener. Management said it will be downsizing its international operations and channelling the resources to strengthen its core operations in the U.S and Canada, which is a positive in our view.
Nonetheless, stiff competition from players like Uber, GrubHub , OpenTable and Amazon and even major tech companies like Google and Facebook among others, is a big concern. All these companies are increasing their efforts to get a bigger share of the market.
For the fourth quarter, management expects revenues in a range of $191 million to $195 million.
Our proven model does not conclusively show that Yelp is likely to beat earnings 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: Yelp has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 3 cents.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Yelp has a Zacks Rank #1 (Strong Buy) 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) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Activision Blizzard, Inc. with an Earnings ESP of +2.78% 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 >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Yelp (YELP) Q4 Earnings: What's in the Cards this Time?
Yelp Inc. (YELP - Free Report) is set to report fourth-quarter 2016 results on Feb 9. Though in the last quarter, the company posted a 200.00% positive earnings surprise, it has an average four-quarter negative earnings surprise of 142.86%.
Let’s see how things are shaping up for this quarter.
Factors to Consider
Yelp delivered strong results in the third quarter, surpassing both top- and bottom-line expectations on the back of significant improvement in cumulative reviews and local advertising accounts. Nearly 70% of the paid reviews came from Yelp’s mobile app, per management. Given its strong results, management had raised its revenue expectations for the fiscal.
However, Yelp’s international business has been a dampener. Management said it will be downsizing its international operations and channelling the resources to strengthen its core operations in the U.S and Canada, which is a positive in our view.
Nonetheless, stiff competition from players like Uber, GrubHub , OpenTable and Amazon and even major tech companies like Google and Facebook among others, is a big concern. All these companies are increasing their efforts to get a bigger share of the market.
For the fourth quarter, management expects revenues in a range of $191 million to $195 million.
Yelp Inc. Price and EPS Surprise
Yelp Inc. Price and EPS Surprise | Yelp Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Yelp is likely to beat earnings 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: Yelp has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 3 cents.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Yelp has a Zacks Rank #1 (Strong Buy) 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) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Pandora Media, Inc. with an Earnings ESP of +10.81% and a Zacks Rank #3. 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.
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 >>