What To Expect From Quotient Technology (QUOT) Q1 Earnings?

Quotient Technology Inc. (NYSE:QUOT) is set to report first-quarter 2017 results on May 2. Last quarter, the company posted a 100.00% positive earnings surprise. Moreover, in the last four quarters, the company delivered an average positive earnings surprise of 68.41%.

Let’s see how things are shaping up for this announcement.

Factors at Play

Quotient Technology is one of the pioneers in providing digital promotion and media platform, which connects brands, retailers and consumers. The company is riding on the growing demand for digital coupons. Key partnerships with the likes of Samsung (KS:005930), Albertsons and Safeway are likely to boost its business and consequently its performance.

Moreover, the launch of Retailer iQ product will drive its transaction growth over the long term. At the end of 2016, the company had 40 million shoppers registered on programs powered by the platform. However, macroeconomic headwinds as well as stiff competition remain major concerns.

We note that Quotient Technology underperformed the Zacks categorized Internet Software Service industry in the last one year. The company’s shares decreased 5.73% compared with the industry’s gain of 32.29% during the period.

For the first quarter of 2017, the company expects revenues in the range of $70 million to $73 million. Adjusted EBITDA is expected to be in the range of $6.5 to $7.5 million

Earnings Whispers

Our proven model does not conclusively show that Quotient Technology is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: Earnings ESP for Quotient is 0.00%. This is because the Most Accurate estimate and Zacks Consensus Estimate are both pegged at loss of 6 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Quotient has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are a few companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming release:

AMETEK, Inc. (NYSE:AME) with an Earnings ESP of +1.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Exelixis, Inc. (NASDAQ:EXEL) has an Earnings ESP of +100.00% and a Zacks Rank #3.

GoDaddy Inc. (NYSE:GDDY) with an Earnings ESP of +125.00% and a Zacks Rank #3

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