Local business platform Yelp (NYSE: YELP) will be reporting results this Thursday after the bell. Here’s what to look for.
Yelp beat analysts’ revenue expectations last quarter, reporting revenues of $361.5 million, flat year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Yelp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Yelp’s revenue to be flat year on year, slowing from the 3.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Yelp rarely misses Wall Street’s revenue estimates.
Looking at Yelp’s peers in the social networking segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 61.1%, beating analysts’ expectations by 9.9%, and Snap reported revenues up 18.9%, topping estimates by 3.8%. Reddit traded down 21% following the results while Snap was up 12.5%.
Read our full analysis of Reddit’s results here and Snap’s results here.
Investors in the social networking segment have had steady hands going into earnings, with share prices flat over the last month. Yelp is up 1.1% during the same time and is heading into earnings with an average analyst price target of $26.71 (compared to the current share price of $26.63).
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