Previewing Earnings for LinkedIn, Akamai, Visa & Others

Indie Research

Stocks tend to be most volatile around earnings season, when a good or bad report can make or break it. However, a good or even great earnings report doesn't necessarily translate into a huge pop for a stock.

During earnings season, BullMarket.com publishes a comprehensive 25- to 40-page Earnings Preview report for the week ahead each Friday.

Over the past year, BullMarket.com used the data it has collected to correctly predict investor reactions for approximately two-third of the stocks it's previewed.

In its latest earnings preview, BullMarket.com looks at several popular stocks srill sent to report results this week, including Yelp (YELP), Visa (NYSE:V), LeapFrog (LF), Akamai (AKAM), Nuance Communications (NUAN), and LinkedIn (LNKD).

Here is just a tiny sample of what BullMarket.com wrote about Yelp:

Yelp has topped analyst EPS estimates one of three quarters since it IPO'd in 2012, missing the consensus once and meeting it once. Over that period, the stock has risen the next session one of three quarters. ...

Last quarter, Yelp reported that it lost -$2 million, or -3 cents a share, for the quarter ended September 30th, on revenue of $36.4 million. That compared with a loss of -$3.8 million, or -24 cents a share, on sales of $22.3 million in the same period a year ago.

The company's sales figures were in line with raised estimates it pre-announced a week prior to the earnings release. Yelp also announced it acquired European local-review company Qype for approximately $50 million. ...

Chief Financial Officer Rob Krolik said the company ended the third quarter with almost 84 million unique visitors, a 37% increase from a year ago, and 33 million total reviews on the Yelp site, up 49% from last-year's third quarter. Paying local businesses hit 889,000 up 68% year-over-year and up 98,000 from the second quarter. Active local business accounts grew 82% year-over-year to 35,500. ...

Outside of earnings, Yelp is a strong brand that connects consumers with local businesses. It drives 100% of its traffic organically with consumers looking to review local businesses. These businesses then claim their listings to better interact with customers. Yelp then makes money through local advertising, lead generation, and instant deal promotions.

It's a highly scalable business model that should become very profitable over time. It also works great with mobile, and the company's integration into Siri should help drive further mobile traffic to its side.

However, Facebook's new Graph Search could eventually become a serious competitive threat. ...

The full BullMarket.com earnings analysis includes a look at historical earnings data and EPS trends for the companies above and more; examines past investor reactions to earnings in various contexts; gives options activity analysis; reviews previous-quarter earnings; and gives an opinion on both what earnings will look like and how investors will react based on the aforementioned data points.

Just a few of the correct calls BullMarket.com made for Q4 so far were:

  • to be bullish on Netflix (NFLX) ahead of earnings.
  • to be bullish on Shutterfly (SFLY) ahead of earnings.
  • to be bearish on Yum Brands (BAC) ahead of earnings.
  • A daily investment service that is committed to creating long-term wealth for its members, BullMarket.com's Recommended List of stocks is up 104.9% from 2009-2012 versus a 57.9% return for the S&P, a 47.0% outperformance, topping the benchmark each year since the start of the Great Recession. Subscribers receive actionable market commentary, access to 40+ stock ideas on the Recommended List, and real-time trade alerts. Plus, sign up for a free trial today to view Bull Market's in-depth Special Reports - including its annual High Yield and MLP reports - and its timely Earnings Previews, which are published every Friday during the heart of earnings season. Get a Risk-Free Trial to Bull Market Today! (Please note returns are unaudited.)

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