Angi ANGI shares have gained 2.5% year to date, outperforming the broader Zacks Computer and Technology sector’s decline of 1.7%.
It has also outperformed Zacks Internet – Content industry and peers like DHI Group DHX, Tencent Music Entertainment Group TME, and Shutterstock SSTK.
Over the same time frame, shares of DHI Group, Tencent Music Entertainment Group and Shutterstock have declined 14.8%, 23% and 28.3%, respectively, while the industry has appreciated 0.3%.
This outperformance can be attributed to the optimization of the sales force, enhancement of Supply Chain Management, and improvement in customer experience. Increasing focus on marketing efficiency and expanding product offerings have also helped in driving prospects.
Angi Inc. Price and Consensus
Angi Inc. price-consensus-chart | Angi Inc. Quote
ANGI’s Restructured Sales Force to Drive Prospects
Angi has systematically optimized and restructured its sales force to increase retention and quality of service and professionals to drive the bottom line.
For the second quarter of 2024, ANGI reported an operating income of $9.1 million against a loss of $15.3 million year on year.
ANGI incorporated online enrolment of professionals to target high-quality professionals and reduce team acquisition costs. In the second quarter of 2024, 187,000 service professionals completed jobs, advertised services, or sought consumers.
ANGI aims to drive its revenue growth by enhancing product and customer experience to increase long-term customer retention. The company is also improving its SCM to drive topline and enhancing its sales force to stabilize prospects.
ANGI’s Enhanced Marketing to Drive Top Line
Angi has rebuilt its online infrastructure to broadcast real time content and to keep the it relevant and updated.
It has improved marketing efficiency by removing lower-value revenue avenues. ANGI has synergized matching and monetization through technology integration to drive topline.
In the second quarter of fiscal 2024, Monetized Transactions per Service Request increased 20% to 1.37.
ANGI’s reduction in headcount has also aided in driving efficiency. Its selling and marketing expenses declined 24% to $15.8 million for the second quarter of 2024.
ANGI’s international clientele has increased due to improved and increased online advertisement.
International revenues for second-quarter fiscal 2024 increased 14% to $33 million, whereas selling and marketing expenses in the international market increased 10% to $1.2 million.
ANGI’s Earnings Estimates Bright
The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at 1 cent per share, unchanged in the past 30 days but indicating a 116.67% year-over-year increase.
For the full year 2024, Angi expects ($10)-$40 million of operating (loss) income and $130-$150 million of Adjusted EBITDA.
For fiscal 2024, the Zacks Consensus Estimate for revenues is pegged at $1.18 billion, indicating a year-over-year decline of 18.14%.
ANGI’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 129.17%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Right Time for Investors to Jump Into ANGI Shares?
Deterioration of third-party service quality, high inflation and interest rates are negatively impacting ANGI’s prospects.
However, ANGI’s sales force restructuring, enhanced marketing efficiency and improved SCM bodes well for investors.
ANGI stock is trading cheap as reflected by the Value Score of A.
The company currently carries a Zacks Rank #2 (Buy). Hence, investors should consider accumulating ANGI stocks.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
