Yelp (NYSE:YELP) traded 25% higher on Thursday morning, after posting earnings that beat analyst estimates.
The company reported earnings per share of $0.12 and total revenue of $235 million, above Wall Street expectations of $0.01 and $232 million. The higher revenue was due in part to the acquisition of new accounts by smaller businesses. Management also raised its guidance for FY 2018, boosting its profit forecast to $186-192 million from $179-188 million.
Explained CEO Jeremy Stoppelman, “Second quarter results were once again driven by strong revenue growth in our core advertising business. We completed the transition to selling non-term local advertising in the quarter, which helped deliver record advertising account additions. Our growth initiatives elsewhere also produced encouraging results.”
In analyzing Yelp’s market cycles, we can see that it just began the rising phase of a new cycle. We previously saw the stock create a double top, suggesting lower prices. However, YELP now appears to have repaired itself. As it is still early in this new cycle, we believe it will likely move even higher, potentially to new highs for the year.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.