Can Yelp Keep Its Rally Alive With Q2 Earnings?

By Chris Lange Updated Jan 13, 4:47AM EST · Published Aug 9, 11:25AM EDT

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Can Yelp Keep Its Rally Alive With Q2 Earnings? — © Thinkstock

Yelp Inc. (NYSE: YELP) is scheduled to release its second-quarter earnings report after the markets close on Tuesday. This year has been demonstrative of this company’s ability to leverage its user-generated content and deepen its merchant relationships. Overall the stock has beat out the major indexes (practically doubling in the past six months) and surprised most investors by seemingly breaking away from its two-year slump.

The consensus estimates calling for a net loss of $0.07 per share on $169.82 million in revenue for the quarter. Yelp posted a net loss of $0.02 per share on revenue of $133.91 million in the same period of last year.

Previously, the company said that it expects to have net revenues in the range of $167 million to $171 million for the second quarter, while adjusted EBITDA is expected between $21 million to $25 million.

Yelp had a great start to the year, with local revenue growth accelerating to 40% in the first quarter. The company also hit a major milestone, surpassing 100 million cumulative reviews.

Management continues to believe that Yelp’s sizable, purchase-oriented traffic makes it “the perfect place for local businesses to advertise,” as well as positioning it “to capture the significant opportunity as local ad dollars continue to shift online.”

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A few analysts weighed in on Yelp before the company released its earnings report:

Morgan Stanley has an Equal Weight rating with a $26 price target.
Cantor Fitzgerald reiterated a Buy rating with a $38 price target.
MKM Partners reiterated a Buy rating with a $40 price target.
Evercore ISI reiterated a Hold rating with a $23 price target.
Citigroup has a Neutral rating with a $31 price target.
Jefferies reiterated a Buy rating.
Piper Jaffray reiterated a Hold rating with a $22 price target.
Wells Fargo has an Underperform rating.
Wedbush has a Neutral rating with a $30 price target.
Needham reiterated a Buy rating with a $34 price target.

In 2016 thus far, Yelp has outperformed the broad markets, with the stock up about 10%. Over the past 52 weeks, the stock extends its lead with shares up 25%.

Shares of Yelp were trading at $31.66 on Tuesday, with a consensus analyst price target of $27.73 and a 52-week trading range of $14.53 to $32.66.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.