) is set to report fourth quarter 2013 results on Feb 20, 2014.
Last quarter, it posted a 100% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors this Past Quarter
Groupon is well positioned to gain from the rising e-commerce
spending on mobile devices, a profitable domestic market and an
under-penetrated international market. We expect these
opportunities to continue to drive top-line growth going forward.
Moreover, increased traction in the mobile business is another
positive for the company.
However, stiff competition from the likes of technology stalwarts
such as eBay, Amazon and Google combined with a volatile
macroeconomic environment and continued investments aimed at
enlarging merchant base are the major headwinds going forward.
Moreover, the departure of product head Jeffry Holden just prior
to the results can negatively impact product development in the
Our proven model does not conclusively show that Groupon is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
: Both the Most Accurate estimate and the Zacks Consensus
Estimate stand at a loss of 1 cent. Hence, the difference is
: Groupon's Zacks Rank #3 (Hold) when combined with an earnings
ESP of 0.00% makes surprise prediction difficult. We caution
against stocks with Zacks #4 and #5 Ranks (Sell rated stocks)
going into the earnings announcement, especially when the company
is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
), Earnings ESP of +1.18% and a Zacks Rank #2 (Buy).
), Earnings ESP of +0.33% and a Zacks Rank # 2.
), Earnings ESP of +12.82%and a Zacks Rank #3.
ACTAVIS PLC (ACT): Free Stock Analysis Report
EQUINIX INC (EQIX): Free Stock Analysis
GROUPON INC (GRPN): Free Stock Analysis
HEWLETT PACKARD (HPQ): Free Stock Analysis
To read this article on Zacks.com click here.