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Peek into E-commerce Q2 Earnings on Aug 4: PCLN, TVPT & More

We are in the thick of the second-quarter earnings season, with as many as 1000 companies, including 116 S&P 500 members, scheduled to post their financial numbers this week. By the end of next week, we will have seen Q2 results from more than 87% of the index members.

Results till now have shown a modest improvement from the extremely weak levels over the last couple of quarters. However, growth is still elusive, with Q2 likely to be the fifth quarter in a row of earnings decline for the S&P 500 index.

As of Friday, Jul 29, we saw Q2 results from 317 S&P 500 members that together account for 73.5% of the index's total market capitalization. Total earnings for these members are down 3.3% from the same period last year on 0.9% lower revenues, with 72.9% beating EPS estimates and 53.6% coming ahead of top-line expectations.

Coming to the technology sector, we now have results from 84.6% of the sector's total market cap in the index. The results here are so far better than expected. Still, total earnings in this sector are down 0.9% from the same period last year even as revenues have improved2.1%.The beat ratio is impressive, with 83.3% exceedingEPS estimates and 77.8% surpassing revenue expectations.(Read more: Q2 Earnings Trends Already Established )

E-commerce is one of the most important components of the technology sector. The online trend continues to gather steam as the younger generation is rapidly adapting to fast-advancing technology. Also, improvements in the mobile device segment have led the online companies to deliver strong numbers.

Among the companies slated to come up with second-quarter results this week, let's see what's in store for these four major e-commerce stocks. These are all scheduled to report on Thursday, Aug 4.

The Priceline Group Inc. PCLN

Last quarter, Priceline recorded a positive earnings surprise of 7.33%. Also, Priceline outperformed the Zacks Consensus Estimate in each of the last four quarters, with an average positive surprise of 4.73%.

Notably, our proven model does not conclusively show that Priceline is likely to beat the Zacks Consensus Estimate this quarter. This is because 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. Unfortunately, that is not the case here as elaborated below:

For the second quarter, Priceline has an Earnings ESP of -0.35% as the Most Accurate estimate stands at $11.50 and the Zacks Consensus Estimate is pegged at $11.54. Meanwhile, the company has a Zacks Rank #3, which increases the predictive power of ESP. However, a negative ESP makes surprise prediction difficult. (Read more: Priceline Stock 2Q Earnings Preview: Beat or Miss? )

PRICELINE.COM Price and EPS Surprise

PRICELINE.COM Price and EPS Surprise | PRICELINE.COM Quote

Travelport Worldwide Limited TVPT

Travelport recorded a positive earnings surprise of 13.33% last quarter. Also, Travelport outperformed the Zacks Consensus Estimate in each of the last four quarters, with an average positive surprise of 35.84%.

For the second quarter, Travelport has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 23 cents. The company has a Zacks Rank #3, which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.

TRAVELPORT WWD Price and EPS Surprise

TRAVELPORT WWD Price and EPS Surprise | TRAVELPORT WWD Quote

Mercadolibre, Inc. MELI

Last quarter, Mercadolibre recorded a positive earnings surprise of 25.93%. Also, the company outperformed the Zacks Consensus Estimate thrice in the last four quarters, with an average positive surprise of 10.43%.

Notably, our proven model shows that Mercadolibre is likely to beat the Zacks Consensus Estimate as it has the right combination of a positive Earnings ESP and a favorable Zacks Rank.

For the second quarter, Mercadolibre has an Earnings ESP of +3.51% as the Most Accurate estimate stands at 59 cents while the Zacks Consensus Estimate is pegged at 57 cents. Also, the company has a Zacks Rank #3, which increases the predictive power of ESP.

MERCADOLIBRE IN Price and EPS Surprise

MERCADOLIBRE IN Price and EPS Surprise | MERCADOLIBRE IN Quote

Autobytel Inc. ABTL

Autobytel recorded a negative earnings surprise of 50.00% last quarter. However, the company outperformed the Zacks Consensus Estimate thrice in the last four quarters, with an average positive surprise of 24.29%.

For the second quarter, Autobytel has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 10 cents. It currently carries a Zacks Rank #3. So, we can't say whether the company will beat estimates this time around.

AUTOBYTEL INC Price and EPS Surprise

AUTOBYTEL INC Price and EPS Surprise | AUTOBYTEL INC Quote

Stay tuned! Check back on our full write-up on earnings releases of these stocks.

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Want 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

PRICELINE.COM (PCLN): Free Stock Analysis Report

MERCADOLIBRE IN (MELI): Free Stock Analysis Report

AUTOBYTEL INC (ABTL): Free Stock Analysis Report

TRAVELPORT WWD (TVPT): 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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