Yelp (YELP) Stock Declining on Weak Revenue Forecast

NEW YORK (TheStreet) -- Shares of Yelp Inc  (YELP) are declining by 0.61% to $39.15 on heavy volume in afternoon trading Friday, continuing its losses following the company's disappointing second quarter outlook.

Yelp expects second quarter revenue in a range of between $131 million to $134 million. For the full year, it expects between $574 million and $579 million.

The consensus estimates are for revenue of $138.42 million in the second quarter, and $579.21 million for the full year, according to analysts polled by Thomson Reuters. 

On Wednesday, Yelp reported first quarter earnings of 10 cents per share, surpassing the consensus estimate of 1 cent per share. Revenue of $118.5 million, fell short of the consensus estimate of $119.98 million, according to Reuters.

About 3.52 million shares of Yelp have exchanged hands as of 1:12 p.m. ET today, compared to its average trading volume of about 3.42 million shares a day.

San Francisco-based Yelp is a website for reviews that provides local businesses with a range of free and paid services, helping them engage with consumers.

The company's users having contributed a total of about 36 million reviews of various businesses including restaurants, boutiques and salons to dentists, mechanics and plumbers on its platform.

Separately, TheStreet Ratings team rates YELP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate YELP INC (YELP) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."

You can view the full analysis from the report here: YELP Ratings Report

YELP ChartYELP data by YCharts

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