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The Meet Group (MEET) to Report Q4 Earnings: What's in Store?

Zacks Equity Research

The Meet Group MEET is set to release fourth-quarter 2018 results on Mar 6.

In the last reported quarter, The Meet Group’s earnings of 10 cents per share beat the Zacks Consensus Estimate by a penny. However, the figure declined 9.1% year over year.

Revenues of $45.7 million surged 42% on a year-over-year basis.

The Meet Group announced preliminary fourth-quarter results in January. The company estimated revenues of almost $52.3 million, better than the previous guidance of $47.8-$48.8 million for the fourth quarter. Adjusted EBITDA was expected to be roughly $10.3 million, better than the previous guidance of $8.7-$9.1 million.

Let’s see how things are shaping up for this announcement.

Factors to Watch

Strong growth in video revenues is expected to drive top-line growth in the to-be-reported quarter. The Meet Group expects video revenues to grow sequentially. Management stated that annualized video revenue run-rate was $71 million (based on the month of December) at the end of 2018 that reflects significant growth within a short span of time.

The company’s live-streaming apps are being rapidly adopted by millennials, which is a positive. The recently launched battle feature on its MeetMe and Skout apps is particularly engrossing.

Battles bring together two livestreamers and their audiences for a live competition in categories like singing or comedy. Each battle lasts just a few minutes, and the streamer earning more diamonds through gifts from viewers during the battle period wins the competition. Robust monetization of the battle feature (users pay for the gifts) is expected to drive top-line growth.

Moreover, advertising revenues are estimated to grow roughly 19% on a quarter-over-quarter basis.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

The Meet Group has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are a few stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

TG Therapeutics TGTX has an Earnings ESP of +.55% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

BioDelivery Sciences International BDSI has an Earnings ESP of +38.46% and a Zacks Rank #1.

Aduro Biotech ADRO has an Earnings ESP of +15.23% and a Zacks Rank #2.

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MeetMe, Inc. (MEET) : Free Stock Analysis Report
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