This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Yelp's Screaming; It's Time to Listen (Update 2)

Updated from 8:13 a.m. EDT to include additional analyst comments in the 10th paragraph.

NEW YORK ( TheStreet) -- Yelp's (YELP - Get Report) second-quarter earnings blew past Wall Street estimates, led by strength in active business accounts. For all those who thought Facebook (FB - Get Report) would derail the company's chances of succeeding, you're sorely mistaken.

The San Francisco-based local business reviewer said it lost 1 cent per share on $55 million in revenue for the second quarter, well above what analysts were thinking. Analysts polled by Thomson Reuters were looking for a loss of 4 cents per share on $53.29 million in sales.

Not only did the company show that its business did well, Yelp has confidence in its future, something analysts are noting. Oppenheimer analyst Jason Helfstein, who boosted his price target to $49 from $30, feels the company may be conservative about the future potential of the business, despite putting third-quarter and full-year estimates above what Wall Street is thinking. "Second-half revenue guidance conservatively assumes slower growth, but mgmt is raising EBITDA guidance by 25%," Helfstein wrote in his note.

For the third quarter, Yelp expects sales to be between $58 million and $59 million, with adjusted EBITDA between $7.5 million and $8 million. Analysts surveyed were looking for $57 million. For fiscal 2013, Yelp anticipates revenue will be between $222 million and $224 million, with adjusted EBIDTA between $27 million and $28 million.

Yelp, led by CEO Jeremy Stoppelman, is showing that any threat from Facebook's Graph Search, which is just starting to roll out to all of Facebook's 1.15 billion users, is vastly premature. The company's local ad growth continues to show exceptional strength, with average monthly visitors rising 38% to 108 million, and active local business accounts soaring 62% to 51,400.

Cantor Fitzgerland analyst Youssef Squali, who rates shares "buy" with a $47 price target, said "The quarter saw a record number of new business paying accounts and growth from older cohorts continuing unabated." Following the quarter, Squali raised his revenue, EBITDA and earnings estimates for fiscal 2013. He now expects the company to generate $223.8 million in revenue, EBITDA of $28.2 million, while losing 12 cents per share.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $92.74 -1.40%
YELP $22.74 0.26%
YHOO $30.92 0.23%
AAPL $111.42 0.58%
GOOG $641.58 0.02%


Chart of I:DJI
DOW 16,795.20 +18.77 0.11%
S&P 500 1,980.79 -6.26 -0.32%
NASDAQ 4,744.9890 -36.2750 -0.76%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs