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Can MaxPoint Pull off a Hat-Trick of Earnings Beat in Q4?

Internet software firm MaxPoint Interactive, Inc.MXPT is scheduled to report fourth-quarter 2015 results after the closing bell on Mar 9.

The company, which went public in early March 2015, recorded a healthy positive earnings surprise of 32.1% in the last reported quarter. The company has beaten earnings estimates twice in the last four quarters with an average negative earnings surprise of 0.6%. Let's see how things are shaping up for this announcement.

Key Factors in the Fourth Quarter

MaxPoint's strategic alliance with leading retail technology firm ATLAS Technology Group is likely to boost the top- and bottom-line as it creates intelligent digital programs for brands to supplement the store-level demand. The partnership offers customized solutions to consumer packaged goods (CPG) companies and suppliers to maximize their digital marketing programs.

MaxPoint's hyper-local platform coupled with the customized store-level sales and inventory system from ATLAS is likely to augment digital advertising and campaign measurement capabilities. In addition, ongoing signals and alerts including store-level attributes, stock data and exception reports to the CPG companies are likely to result in actionable inputs to further improve store profitability.

MaxPoint's proprietary Digital Zip technology and the MaxPoint Intelligence Platform enable it to leverage a distinctive approach in the competitive landscape, setting it apart from its peers. It helps to draw sales by predicting the most likely local buyers of a particular product at a specific retail location and then target cross-channel digital marketing programs at these buyers.

We expect the company to capitalize on its huge addressable market in the coming quarters, with over $50 billion that brands invest for local shopper marketing campaigns. This should enhance MaxPoint's operational results and boost its profitability.

Earnings Whispers

Our proven model does not conclusively show that MaxPoint is likely to beat earnings this quarter as it lacks the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently 0.00%.

Zacks Rank: MaxPoint's Zacks Rank #3 increases the predictive power of ESP. However, an earnings ESP of 0.00% makes surprise prediction difficult. On the other hand, the Sell-rated stocks (#4 and #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Other Stocks to Consider

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Superior Industries International, Inc. SUP , earnings ESP of +11.11% and Zacks Rank #1.

Casey's General Stores, Inc. CASY , earnings ESP of +10.11% and Zacks Rank #1.

BioDelivery Sciences International, Inc. BDSI , earnings ESP of +3.64% and Zacks Rank #3.

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SUPERIOR INDS (SUP): Free Stock Analysis Report

BIODELIVERY SCI (BDSI): Free Stock Analysis Report

CASEYS GEN STRS (CASY): Free Stock Analysis Report

MAXPOINT INTER (MXPT): Free Stock Analysis Report

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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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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