Coupons.com Incorporated COUP is set to release second-quarter 2015 results on Aug 5. Last quarter, the company delivered a negative earnings surprise of 54.55%. The company has an average negative earnings surprise of 2.33% over the last four quarters. Let’s see how things are shaping up for the upcoming announcement.
Factors to Consider
In the first quarter, Coupons.com reported a loss of 5 cents per share, which compared favorably with the Zacks Consensus Estimate of a loss of 11 cents per share and also narrowed considerably from the year-ago loss of 41 cents per share. The company reported revenues of $56.00 million, which surpassed the Zacks Consensus Estimate and the year-ago figure of $52 million.
We believe that the company’s digital promotion platform that connects big brands and retailers with consumers will drive top-line in the to-be reported quarter. The company has over 2,000 brands from more than 700 consumer packaged goods companies under its wings. In addition, many of the grocery, drug and mass merchandise retailers use its promotion platform to engage consumers when they are choosing products to buy.
However, we believe Coupons.com has a tough task in hand as competition is immense from RetailMeNot SALE and daily deals provider Groupon GRPN, which might hamper its results.
Earnings Whispers
Our proven model does not conclusively show that Coupons.Com is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 9 cents per share.
Zacks Rank: Coupons.com carries a Zacks Rank #3 (Hold) which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stock to Consider
Here is a stock that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat this quarter:
Amtech Systems Inc. ASYS, with an Earnings ESP of +8.00% and a Zacks Rank #3.
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