Local business platform Yelp (NYSE: YELP) will be reporting earnings tomorrow after market hours. Here’s what investors should know.
Yelp beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $362 million, up 5.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Yelp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Yelp’s revenue to grow 5.8% year on year to $352.1 million, in line with the 6.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yelp has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Yelp’s peers in the social networking segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Snap delivered year-on-year revenue growth of 14.1%, beating analysts’ expectations by 1.3%, and Reddit reported revenues up 61.5%, topping estimates by 6.2%. Snap traded down 12.6% following the results while Reddit was also down 4.2%.
Read our full analysis of Snap’s results here and Reddit’s results here.
There has been positive sentiment among investors in the social networking segment, with share prices up 20.6% on average over the last month. Yelp is up 5.4% during the same time and is heading into earnings with an average analyst price target of $38.46 (compared to the current share price of $34.62).
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