Local business platform Yelp (NYSE:YELP) will be reporting results tomorrow after market close. Here’s what to look for.
Yelp met analysts’ revenue expectations last quarter, reporting revenues of $360.3 million, up 4.4% year on year. It was an exceptional 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.
This quarter, analysts are expecting Yelp’s revenue to grow 2.4% year on year to $350.5 million, slowing from the 10.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 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 Q4 results, giving us a hint as to what we can expect. Snap delivered year-on-year revenue growth of 14.4%, beating analysts’ expectations by 0.6%, and Pinterest reported revenues up 17.6%, topping estimates by 1.2%. Snap traded down 8.6% following the results while Pinterest was up 19.1%.
Read our full analysis of Snap’s results here and Pinterest’s results here.
There has been positive sentiment among investors in the social networking segment, with share prices up 9.7% on average over the last month. Yelp is up 4% during the same time and is heading into earnings with an average analyst price target of $38.63 (compared to the current share price of $40.39).
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