Yelp(YELP) ZACKS·2025-02-06 16:06Core Viewpoint - Yelp is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended December 2024, with a consensus outlook suggesting a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Financial Expectations - The consensus EPS estimate for Yelp is 350.73 million, up 2.4% from the previous year [3]. - The Most Accurate Estimate for Yelp is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +12.87%, indicating a bullish sentiment among analysts regarding the company's earnings prospects [10][11]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 5.44%, indicating a reassessment by covering analysts [4]. - The direction of estimate revisions may not always reflect in the aggregate change, suggesting variability in analyst sentiment [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Yelp currently holds a Zacks Rank of 3, which, combined with the positive Earnings ESP, indicates a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Yelp exceeded the expected earnings of 0.56, resulting in a surprise of +40% [12]. - Over the past four quarters, Yelp has beaten consensus EPS estimates three times, showcasing a pattern of positive earnings surprises [13]. Conclusion - While an earnings beat or miss can influence stock movement, other factors may also play a significant role in investor sentiment and stock performance [14]. - Betting on stocks expected to beat earnings expectations can enhance the odds of success, making it important to consider Earnings ESP and Zacks Rank before quarterly releases [15].