Yelp Inc is scheduled to release its second-quarter earnings report after the markets close on Tuesday.
The consensus estimates calling for a net loss of $0.07 per share on $169.82 million in revenue for the quarter. Yelp posted a net loss of $0.02 per share on revenue of $133.91 million in the same period of last year.
This year has been demonstrative of this company’s ability to leverage its user-generated content and deepen its merchant relationships. Overall the stock has beat out the major indexes (practically doubling in the past six months) and surprised most investors by seemingly breaking away from its two-year slump.
- Cantor Fitzgerald reiterated a Buy rating with a $38 price target.
- MKM Partners reiterated a Buy rating with a $40 price target.
- Evercore ISI reiterated a Hold rating with a $23 price target.
- Citigroup has a Neutral rating with a $31 price target.
- Jefferies reiterated a Buy rating.
- Piper Jaffray reiterated a Hold rating with a $22 price target.
- Wells Fargo has an Underperform rating.
- Wedbush has a Neutral rating with a $30 price target.
- Needham reiterated a Buy rating with a $34 price target.
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Shares of Yelp Inc spiked following the company’s Q2 results. While EPS of $0.16 may not be comparable to the Street’s consensus for a net loss of $(0.07) per share, revenue of $173.4 million beat estimates of $169.8 million.
For the third quarter, management said it expects adjusted EBITDA in the $24 million to $28 million range, on sales of $180 million to $184 million, above the Street’s consensus of $179.6 million. For the full year, the team said it envisions EBITDA of $100 million to $108 million, on revenue of $700 million to $708 million, once again ahead of estimates for $699 million.
CEO Jeremy Stoppelman said Yelp, "had a great second quarter with local revenue growth accelerating to 41% year over year… Our mission is to connect people with great local businesses and we did that through more than 300 million connections in the second quarter – which include mobile calls, clicks for map views and directions, food orders, restaurant reservations, and new reviews, among other actions."
One final figure that's important to Yelp is local ad accounts, which rose by 32 percent year-over-year to roughly 128,000. Local revenue growth accelerated to 41 percent year-over-year, hitting $151.9 million, helped driven by robustness “across the local, national and self-serve channels and improved revenue retention.”
Yelp shares closed the Tuesday session up $0.96 or 3.03 percent, at $32.64. It traded up more than 6.8 percent to $34.89 after hours.