Markets (WEB) Q3 Earnings: What's in the Cards This Time? Group, Inc.WEB is set to release third-quarter 2016 earnings on Nov 3. In the last quarter, the company reported a positive earnings surprise of 8.00%.We note that the company delivered positive earnings surprises in all the last four quarters, with an average positive earnings surprise of 10.25%.

Let's see how things are shaping up for this announcement.

Factors to Consider delivered mixed results in the second-quarter of 2016. While earnings beat the Zacks Consensus Estimate, revenues missed the same. On a year-over-year basis, the company registered top-line growth. However, the bottom-line declined.

During the last quarter, announced its partnership with CodeGuard, a website backup services provider. The company now offers CodeGuard's suite of website backup services to the customers who sign up for its hosting plans. is actively ramping up its portfolio of high quality security products so as to boost the online security of its customers. This augurs well for the company as it will eventually bring in more subscribers for its services and impact the top line in a positive manner.

For third-quarter 2016, expects non-GAAP revenues to be approximately $193 million-$195 million. The company expects EBIDTA margins of approximately 24% and earnings within 63 cents and 67 cents per share.

Earnings Whispers?

Our proven model does not conclusively show that is likely to beat earnings 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. That is not the case here, as you will see below.

Zacks ESP:'s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 55 cents per share. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Zacks Rank: carries a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 and 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

WEB.COM GROUP Price and EPS Surprise

WEB.COM GROUP Price and EPS Surprise | WEB.COM GROUP Quote

Stocks to Consider

Here are some companies that, as per our model, have the right combination of elements to post an earnings beat this quarter:

Inovalon Holdings, Inc. INOV with an Earnings ESP of +50.00% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

SITO Mobile, Ltd. SITO with an Earnings ESP of +100.00% and a Zacks Rank #1.

Stratasys Ltd. SSYS with an Earnings ESP of +41.67% and a Zacks Rank #1.

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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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