OpenTable Inc. (NASDAQ: OPEN) is set to report earnings after the close today. This online restaurant reservation and information destination site has seen is stock fall massively from its 2011 highs as investors have tended to cease paying for its growth. Shares were at $51.00 just yesterday but now the stock is back under $50.00 and its 52-week range is $35.60 to $118.66.
Some of the bulls may be wondering if OpenTable can mirror the results and the reaction of Netflix, Inc. (NASDAQ: NFLX) and Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR). Both of those stocks have surged since they reported mixed earnings and guidance.
The online restaurant reservation player has more implied competition and it still trades at almost 35-times expected 2012 earnings estimates. Estimates are $0.30 EPS on 19% sales growth to $36.81 million; next quarter estimates are $0.34 EPS on $40.28 million in sales.
With the stock around $49.00, the consensus price target from Thomson Reuters appears to only be $51.15. OpenTable has a market cap of more than $1.1 billion with estimates of only almost $169.5 million in sales expected for all of 2012.
On longer-term basis, the chart is in the middle of two key points. The 50-day moving average is $52.05 and the 200-day moving average is all the way up at $60.64.
Options traders appear to be braced for a move of up to about $4.50 ot $5.00 in either direction. If they are correct. OpenTable could easily be trading up 10% or down 10% on Wednesday after tonight’s earnings report.
JON C. OGG
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