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E-Commerce Earnings Slated for May 9: STMP, W, PETS, LVNTA

We are nearing the end of the first quarter earnings season with results from 374 S&P 500 members or almost 75% of the index’s total membership already out.

The results, so far, have not been as disappointing as were anticipated at the onset of the earnings season. Per the latest Zacks Earnings Trend report, approximately 71.4% have posted positive earnings surprises. This is because of extremely conservative estimates at the start of this season to account for the dismal start to 2016.

A few e-commerce companies are slated to report their earnings results early next week. E-commerce continues to be one of the integral components of the technology sector with online buying trends fast catching up with the younger generation who are typically quick to adopt technological change. Furthermore, the growing popularity of smartphone applications is a boon for online companies.

Let’s take a quick look at how some bellwethers of the sector performed this quarter. Amazon.com’s AMZN first-quarter earnings per share (EPS) of $1.07 were way ahead of the Zacks Consensus Estimate of 61 cents. The North America and AWS segments were strong contributors to profits while investments in the international business continued. eBay’s EBAY EPS of 14 cents also marched past the Zacks Consensus Estimate of 9 cents. Also, Expedia EXPE reported a positive earnings surprise of 46.87%.

Now, let’s take a sneak peek into four major e-commerce companies, Stamps.com Inc. STMP, Wayfair Inc. W,  PetMed Express, Inc. PETS and Liberty Ventures LVNTA that are lined up to report earnings early next week.

Stamps.com, a leading provider of Internet-based postage services to a wide range of users, is slated to report first quarter 2016 results on May 9.

For the quarter, Stamps.com has an Earnings ESP of 0.00% and it carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 69 cents.

Last quarter, the company posted a positive earnings surprise of 36.71%. In fact, Stamps.com has a healthy track record with respect to earnings, having delivered positive surprises in each of the last four quarters with an average beat of 43.84%.

We note that Stamps.com is very active on the acquisition front. Integration of ShipStation and ShipWorks acquisitions done in 2014 is helping the company realize benefits from those deals. In 2015, the company completed the acquisition of Endicia and started integrating it into its own businesses.

The company’s strong position in shipping driven by positive contributions from these acquisitions is expected to be the main growth driver of results in the to-be reported quarter.

Wayfair Inc., one of the world’s largest online destinations for home furnishings and décor, is set to report first quarter 2016 results on May 9.

For the quarter, Wayfair has an Earnings ESP of 0.00% and carries a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at a loss of 48 cents.

Last quarter, Wayfair posted a positive earnings surprise of 35.71%. The company has delivered positive surprises in each of the last four quarters with an average beat of 32.04%.

Wayfair continues to expand its new as well as existing customer base through provision of exceptional shopping experience, redefining home retail.  Customer satisfaction is its prime focus area and it plans to innovate across selection, service and design inspiration.

Furthermore, Wayfair is increasingly strengthening its brand in the U.S. and investing in Europe and Canada. These are expected to be key catalysts boosting results.

PetMed Express, America's largest pet pharmacy, will report fourth quarter fiscal 2016 results on May 9.

For the quarter, PetMed has an Earnings ESP of 0.00% and it currently has a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 24 cents.

Last quarter, PetMed’s earnings were in line with the Zacks Consensus Estimate. PetMed has surpassed the Zacks Consensus Estimate thrice in the preceding four quarters, with an average positive surprise of 4.44%.

After a continued drag in new order sales and sluggish reorder sales, the third quarter saw a turnaround in both the numbers on the back of favourable weather conditions.

The company continues to focus on advertising efficiency to improve new order sales and shifting sales to higher margin items, while also expanding product offerings and implementing cost reduction strategies.

However, pressure on operating margin remains a concern despite the company’s ongoing cost reduction initiatives.

Liberty Ventures, which operates bodybuilding.com, is an e-retailer that sells nutritional and dietary supplements and hosts an online health and fitness publication. It will report first quarter 2016 results on May 9.

Liberty Ventures has an Earnings ESP of 0.00% and it carries a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at a loss of 6 cents.

Last quarter, Liberty Ventures posted a positive earnings surprise of 100.00%. Liberty Ventures has surpassed the Zacks Consensus Estimate twice in the preceding four quarters, with an average positive surprise of 59.75%.

 

 

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PETMED EXPRESS (PETS): Free Stock Analysis Report
 
EXPEDIA INC (EXPE): Free Stock Analysis Report
 
AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
EBAY INC (EBAY): Free Stock Analysis Report
 
STAMPS.COM INC (STMP): Free Stock Analysis Report
 
WAYFAIR INC (W): Free Stock Analysis Report
 
LIBERTY VENTR-A (LVNTA): Free Stock Analysis Report
 
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