Markets

Will Orbitz Worldwide (OWW) Beat Q1 Earnings Estimates? - Analyst Blog

We expect Orbitz Worldwide, Inc.OWW to beat expectations when it reports first quarter 2015 results on May 7.

Why a Likely Positive Surprise?

Our proven model shows that Orbitz is likely to beat estimates because it has the right combination of two key ingredients.

Positive Zacks ESP:Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at +50.00%. This indicates a likely positive earnings surprise.

Zacks Rank #2 (Buy): Note that stocks with Zacks Rank of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.

The combination of Orbitz's Zacks Rank #2 and +50.00% ESP makes confident about an earnings beat on May 7.

What's Driving the Better-Than-Expected Earnings?

Orbitz's steady expansion in emerging international markets with immense growth opportunities including Asia and South America, initiatives to improve the relevance of results through tablet and mobile optimization and overall improvement in the shopping experience are expected to lead to a positive earnings surprise in the soon-to-be reported quarter.

Last quarter, Orbitz entered into a definitive agreement under which Expedia will acquire Orbitz Worldwide for $12 per share in cash. The acquisition will further boost Orbitz offerings for customers and partners. Moreover, it has entered into a number of strategic alliances, which are expected to drive its results.

Other Stocks to Consider

Orbitz is not the only firm looking up this earnings season. We also see likely earnings beats coming from these three stocks:

  • Intuit Inc. INTU with Earnings ESP of +2.38% and a Zacks Rank #2
  • Cogent Communications Holdings, Inc. CCOI with Earnings ESP of +33.33% and a Zacks Rank #3 (Hold)
  • Hortonworks, Inc. HDP with Earnings ESP of +1.18% and a Zacks Rank #3

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

ORBITZ WORLDWID (OWW): Free Stock Analysis Report

INTUIT INC (INTU): Free Stock Analysis Report

COGENT COMM HLD (CCOI): Free Stock Analysis Report

HORTONWORKS INC (HDP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

CCOI INTU

Other Topics

Earnings Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More