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Internet stocks Trivago (TRVG - Free Report) , Wix.com (WIX - Free Report) , and GrubHub are all set to report their second-quarter 2018 results on Jul 25.
Recent performances have varied for each of the companies, and the full reports will be crucial for all three. Here’s what you should know about each company before their Q2 earnings:
TRVG
Trivago is a technology company that provides internet-related services and products in the fields of hotels, lodging, and metasearch. The hotel specialist went public at the end of 2016 after being spun off from Expedia (EXPE - Free Report) .
Performance has been subpar for the company this year, as shares have slid -35.38% so far. Much of that loss can be derived from a poor first-quarter earnings report on April 25, which made the stock fall 26% on the day. The company reported an earnings loss of $0.07 per share, 250% lower than the Zacks Consenses Estimate of a $.02 loss.
If Trivago wants to regain positive momentum, then its second-quarter earnings need to show signs of improvement. However, expectations have lowered for this quarter, and the consensus estimate is now calling for a loss of $0.07 per share.
Meanwhile, the company has an average EPS surprise of -91.67% over the last four quarters. Another miss here would be potentially disastrous.
WIX
Wix.com is a cloud-based web development platform that enables business, organizations, and individuals to develop customized websites and application platforms. The company recorded a positive earnings surprise of 50% in the last reported quarter.
Along with that earnings beat, total revenues grew 49% year over year to $137.8 million and surpassed the Zacks Consensus Estimate of $135 million. Additionally, the company updated its projections for fiscal 2018 revenue to $594 - $597million, up from an earlier estimate of $591 - 595 million.
Wix’s growth has been massively pushed by the rise in e-commerce, particularly in retail. Demand for web solutions should only continue to increase, especially for small business owners, which bodes well for Wix. Moreover, a strong balance sheet featuring an ample liquidity position and no debt obligations further shows that the company is moving in the right direction.
The Zacks Consensus EPS Estimate is pegged at $0.13 per share for the second quarter. Another earnings beat would keep building on the momentum the company currently has. Although Wix has been on an upwards trend, investors displayed hesitation ahead of the results as shares of the company lost -3.4% on Tuesday, the day before the report.
GRUB
GrubHub is an online and mobile food company that has quickly penetrated the food takeout market in the United States. The company had impressive first-quarter results, with an EPS of $0.52 per share and revenues of $232.6 million—both beating Zacks Consensus Estimates. This has contributed to the stock’s price performance, as shares have risen 53.58% this year.
GrubHub is riding on the transition from offline to online food ordering, mainly from Millennials that prioritize convenience. The company is a first mover in the space and is currently dominating the online food delivery market.
GrubHub’s growth has also been greatly helped by many of its strategic partnerships and acquisitions. Acquistions of Yelp’s (YELP - Free Report) Eat24 and Groupon’s (GRPN - Free Report) OrderUp have broadened the company’s restaurant portfolio, while partnerships with Yum! (YUM - Free Report) -owned KFC and Taco Bell, along with TripAdvisor (TRIP - Free Report) , will keep expanding the brand. GrubHub can continue to pursue these growth strategies as it has about $288 million in cash and cash equivalents.
One of the risks for the company moving forward is that the food delivery space is now beginning to get more crowded. Big names like Amazon (AMZN) and Facebook (FB) are trying to get into the market, along with already-present competition from Uber Eats. These competitors will try to combat GrubHub’s dominance, and it will be interesting to monitor how GrubHub responds.
For second-quarter 2018, GrubHub is estimated to have an EPS of $0.41 per share, representing year-over-year growth of 57.69%. Analyst estimate revisions have been trending upwards in the last 60 days.
The Zacks Consensus Estimate for revenue is at $232.6 million, while GrubHub is forecasting it to be between $228 million and $236 million.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Internet Stocks Earnings In View: TRVG, WIX, GRUB
Internet stocks Trivago (TRVG - Free Report) , Wix.com (WIX - Free Report) , and GrubHub are all set to report their second-quarter 2018 results on Jul 25.
Recent performances have varied for each of the companies, and the full reports will be crucial for all three. Here’s what you should know about each company before their Q2 earnings:
TRVG
Trivago is a technology company that provides internet-related services and products in the fields of hotels, lodging, and metasearch. The hotel specialist went public at the end of 2016 after being spun off from Expedia (EXPE - Free Report) .
Performance has been subpar for the company this year, as shares have slid -35.38% so far. Much of that loss can be derived from a poor first-quarter earnings report on April 25, which made the stock fall 26% on the day. The company reported an earnings loss of $0.07 per share, 250% lower than the Zacks Consenses Estimate of a $.02 loss.
If Trivago wants to regain positive momentum, then its second-quarter earnings need to show signs of improvement. However, expectations have lowered for this quarter, and the consensus estimate is now calling for a loss of $0.07 per share.
Meanwhile, the company has an average EPS surprise of -91.67% over the last four quarters. Another miss here would be potentially disastrous.
WIX
Wix.com is a cloud-based web development platform that enables business, organizations, and individuals to develop customized websites and application platforms. The company recorded a positive earnings surprise of 50% in the last reported quarter.
Along with that earnings beat, total revenues grew 49% year over year to $137.8 million and surpassed the Zacks Consensus Estimate of $135 million. Additionally, the company updated its projections for fiscal 2018 revenue to $594 - $597million, up from an earlier estimate of $591 - 595 million.
Wix’s growth has been massively pushed by the rise in e-commerce, particularly in retail. Demand for web solutions should only continue to increase, especially for small business owners, which bodes well for Wix. Moreover, a strong balance sheet featuring an ample liquidity position and no debt obligations further shows that the company is moving in the right direction.
The Zacks Consensus EPS Estimate is pegged at $0.13 per share for the second quarter. Another earnings beat would keep building on the momentum the company currently has. Although Wix has been on an upwards trend, investors displayed hesitation ahead of the results as shares of the company lost -3.4% on Tuesday, the day before the report.
GRUB
GrubHub is an online and mobile food company that has quickly penetrated the food takeout market in the United States. The company had impressive first-quarter results, with an EPS of $0.52 per share and revenues of $232.6 million—both beating Zacks Consensus Estimates. This has contributed to the stock’s price performance, as shares have risen 53.58% this year.
GrubHub is riding on the transition from offline to online food ordering, mainly from Millennials that prioritize convenience. The company is a first mover in the space and is currently dominating the online food delivery market.
GrubHub’s growth has also been greatly helped by many of its strategic partnerships and acquisitions. Acquistions of Yelp’s (YELP - Free Report) Eat24 and Groupon’s (GRPN - Free Report) OrderUp have broadened the company’s restaurant portfolio, while partnerships with Yum! (YUM - Free Report) -owned KFC and Taco Bell, along with TripAdvisor (TRIP - Free Report) , will keep expanding the brand. GrubHub can continue to pursue these growth strategies as it has about $288 million in cash and cash equivalents.
One of the risks for the company moving forward is that the food delivery space is now beginning to get more crowded. Big names like Amazon (AMZN) and Facebook (FB) are trying to get into the market, along with already-present competition from Uber Eats. These competitors will try to combat GrubHub’s dominance, and it will be interesting to monitor how GrubHub responds.
For second-quarter 2018, GrubHub is estimated to have an EPS of $0.41 per share, representing year-over-year growth of 57.69%. Analyst estimate revisions have been trending upwards in the last 60 days.
The Zacks Consensus Estimate for revenue is at $232.6 million, while GrubHub is forecasting it to be between $228 million and $236 million.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>