YELP Gears Up to Report Q3 Earnings: Is a Beat in the Cards?

Yelp Inc. YELP is slated to report third-quarter 2024 results after market close on Nov. 7.For the third quarter, the company anticipates revenues between $357 million and $362 million. The Zacks Consensus Estimate for third-quarter revenues is pegged at $362 million, indicating a year-over-year increase of 5%.The consensus mark for earnings is pegged at 40 cents per share, suggesting a 49.4% year-over-year decline.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.YELP’s earnings outpaced estimates in each of the trailing four quarters, with an average surprise of 11.7%.Let’s see how things are shaping up for this announcement.Yelp Inc. Price and EPS Surprise Yelp Inc. price-eps-surprise | Yelp Inc. QuoteFactors to ConsiderYelp’s third-quarter performance is likely to have benefited from increasing Advertising revenues. Its retention rate for non-term advertisers might have risen from enhanced ad formats and matching capabilities. Yelp’s shift toward selling advertising plans without any fixed duration is likely to have increased the company’s advertiser accounts.YELP’s top line is likely to have benefited from ongoing improvement in the overall retention of cost-per-click advertisers. Its strategy to provide products across a range of price points is also likely to have improved the number of advertising customers subscribing to its offerings.Yelp’s ongoing growth trend in the home services category and Request-a-Quote projects is likely to have continued in the to-be-reported quarter. The company reported that growth in Request-a-Quote projects accelerated from 20% year over year in the first quarter of 2024 to 35% year over year in the second quarter of 2024. In the home services category, Yelp has been experiencing a strong demand from advertiser customers.YELP's continued investment in AI and machine learning to optimize advertisers’ budgets by displaying the most relevant ad content to consumers is likely to have attracted a greater number of advertisers in the to-be-reported quarter. Moreover, Yelp’s business is likely to have benefited from seasonality, which typically makes the third quarter its strongest.Earnings WhispersOur proven model predicts an earnings beat for YELP this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (46 cents per share) and the Zacks Consensus Estimate (40 cents per share), is +15.48%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Zacks Rank: YELP sports a Zacks Rank #1 at present.Other Stocks to ConsiderHere are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Arista Networks ANET has an Earnings ESP of +0.72% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.ANET shares have surged 67.9% year to date. ANET is slated to report third-quarter 2024 results on Nov. 7.Shopify SHOP has an Earnings ESP of +5.78% and sports a Zacks Rank of 1 at present.SHOP shares have gained 0.7% year to date. SHOP is scheduled to report third-quarter 2025 results on Nov. 12.Bumble BMBL has an Earnings ESP of +35.00% and a Zacks Rank #3 at present.Bumble shares have plunged 50.6% year to date. BMBL is slated to report third-quarter 2024 results on Nov. 6.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yelp Inc. (YELP): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Bumble Inc. (BMBL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks