We expect Orbitz Worldwide, Inc. OWW to beat expectations when it reports first quarter 2015 results on May 7.
Why a Likely Positive Surprise?
Our proven model shows that Orbitz is likely to beat estimates because it has the right combination of two key ingredients.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at +50.00%. This indicates a likely positive earnings surprise.
Zacks Rank #2 (Buy): Note that stocks with Zacks Rank of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.
The combination of Orbitz’s Zacks Rank #2 and +50.00% ESP makes confident about an earnings beat on May 7.
What's Driving the Better-Than-Expected Earnings?
Orbitz’s steady expansion in emerging international markets with immense growth opportunities including Asia and South America, initiatives to improve the relevance of results through tablet and mobile optimization and overall improvement in the shopping experience are expected to lead to a positive earnings surprise in the soon-to-be reported quarter.
Last quarter, Orbitz entered into a definitive agreement under which Expedia will acquire Orbitz Worldwide for $12 per share in cash. The acquisition will further boost Orbitz offerings for customers and partners. Moreover, it has entered into a number of strategic alliances, which are expected to drive its results.
Other Stocks to Consider
Orbitz is not the only firm looking up this earnings season. We also see likely earnings beats coming from these three stocks:
- Intuit Inc. INTU with Earnings ESP of +2.38% and a Zacks Rank #2
- Cogent Communications Holdings, Inc. CCOI with Earnings ESP of +33.33% and a Zacks Rank #3 (Hold)
- Hortonworks, Inc. HDP with Earnings ESP of +1.18% and a Zacks Rank #3
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