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What to Expect from Web.com (WEB) this Earnings Season?
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Web.com Group, Inc. is set to release fourth-quarter 2016 earnings on Feb 9. In the last quarter, the company reported a positive earnings surprise of 20.00%. We note that the company delivered positive earnings surprises in the last four quarters, with an average surprise of 12.80%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Web.com delivered mixed results in the third-quarter of 2016. While earnings beat the Zacks Consensus Estimate, revenues missed the same.
Web.com is actively ramping up its portfolio of high quality security products so as to boost the online security of its customers. This augurs well for the company bringing in more subscribers for its services and impacting the top line in a positive manner.
During the fourth quarter, Web.com announced acquisition of Latin America based, web hosting and domain registration firm, Donweb.com to accelerate its overseas expansion. Web.com has been undertaking strategic acquisitions to boost its operation. It had earlier acquired one of the foremost provider of cloud based marketing solutions for SMBs, Yodle.
For fourth-quarter 2016, Web.com expects non-GAAP revenues to be approximately $186 million–$189 million. The company expects adjusted EBIDTA margin of approximately 24% and non-GAAP earnings within 65 cents to 69 cents per share.
Our proven model does not conclusively show that Web.com 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: Web.com’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 57 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Web.com carries 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 and 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:
Applied Optoelectronics Inc. (AAOI - Free Report) with an Earnings ESP of +15.87% and a Zacks Rank #1.
Activision Blizzard, Inc. with an Earnings ESP of +2.78% and a Zacks Rank #3.
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What to Expect from Web.com (WEB) this Earnings Season?
Web.com Group, Inc. is set to release fourth-quarter 2016 earnings on Feb 9. In the last quarter, the company reported a positive earnings surprise of 20.00%. We note that the company delivered positive earnings surprises in the last four quarters, with an average surprise of 12.80%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Web.com delivered mixed results in the third-quarter of 2016. While earnings beat the Zacks Consensus Estimate, revenues missed the same.
Web.com is actively ramping up its portfolio of high quality security products so as to boost the online security of its customers. This augurs well for the company bringing in more subscribers for its services and impacting the top line in a positive manner.
During the fourth quarter, Web.com announced acquisition of Latin America based, web hosting and domain registration firm, Donweb.com to accelerate its overseas expansion. Web.com has been undertaking strategic acquisitions to boost its operation. It had earlier acquired one of the foremost provider of cloud based marketing solutions for SMBs, Yodle.
For fourth-quarter 2016, Web.com expects non-GAAP revenues to be approximately $186 million–$189 million. The company expects adjusted EBIDTA margin of approximately 24% and non-GAAP earnings within 65 cents to 69 cents per share.
Web.com Group, Inc. Price and EPS Surprise
Web.com Group, Inc. Price and EPS Surprise | Web.com Group, Inc. Quote
Earnings Whispers?
Our proven model does not conclusively show that Web.com 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: Web.com’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 57 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Web.com carries 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 and 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:
Applied Optoelectronics Inc. (AAOI - Free Report) with an Earnings ESP of +15.87% and a Zacks Rank #1.
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 >>