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Strength Seen in Match Group (MTCH): Can Its 3.4% Jump Turn into More Strength?

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Match Group (MTCH - Free Report) shares rallied 3.4% in the last trading session to close at $143.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.9% loss over the past four weeks.

Increase in share price can be attributed to Match Group’s strong top line performance in the first quarter of 2021. The company reported first quarter revenues of $667.6 million which increased 23% year over year. Continued momentum at Tinder and solid performances of other apps like Hinge, Pairs and OkCupid drove the top line.

Direct revenues from Tinder increased 18% year over year. Moreover, Tinder average subscriber increased 15% year over year while Tinder average revenues per user (ARPU) increased 4% in the first quarter.

Also, direct revenues from non-Tinder brands collectively increased 30% on a year-over-year basis in the quarter under review.

Driven by improving trends across portfolio, Match Group expects to report revenues between $680 million and $690 million for the second-quarter 2021, indicating year-over-year growth of 22-24%.

Price and Consensus

Price Consensus Chart for MTCH

This media and internet company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $677.79 million, up 22% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Match Group, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MTCH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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