Yelp Earnings: Here’s Why Investors are Happy Now

Yelp (NYSE:YELP) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.46%.

Yelp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.01 in the quarter versus EPS of $-0.03 in the year-earlier quarter.

Revenue: Rose 68.51% to $55.02 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Yelp reported adjusted EPS loss of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.04. It beat the average revenue estimate of $53.29 million.

Quoting Management: “We had a great second quarter with strong execution in all areas of our business as the Yelp brand becomes increasingly prevalent around the world,” said Jeremy Stoppelman, Yelp’s chief executive officer. “In the second quarter, we launched new features on the mobile app and created a Call to Action feature, yet another way for us to close the loop between consumers and local businesses. As we look to the rest of the year, we will continue to focus on driving innovation in mobile, integrating Qype, and closing the loop with local businesses.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased to $-0.01 in the quarter versus EPS of $-0.08 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0 to a loss $0.02. For the current year, the average estimate has moved down from a loss of $0.1 to a loss of $0.15 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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