Yelp Inc. YELP is slated to report fourth-quarter 2024 results after market close on Feb. 13.

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For the fourth quarter, the company anticipates revenues between $347 million and $352 million. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $350.7 million, indicating a year-over-year increase of 2.4%.

The consensus mark for earnings is pegged at 51 cents per share, suggesting a 37.8% year-over-year increase. The consensus estimate for the bottom line has remained unchanged over the past 60 days.

YELP’s earnings outpaced estimates thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 143.7%.

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

Factors to Note Ahead of Yelp’s Q4 Results

Yelp’s fourth-quarter performance is likely to have benefited from increasing Advertising revenues. Its retention rate for non-term advertisers might have risen from enhanced ad formats and matching capabilities. Yelp’s shift toward selling advertising plans without any fixed duration is likely to have increased the company’s advertiser accounts.

YELP’s top line is likely to have benefited from ongoing improvement in the overall retention of cost-per-click advertisers. Its strategy to provide products across a range of price points is also likely to have improved the number of advertising customers subscribing to its offerings.

Yelp’s ongoing growth trend in the home services category and Request-a-Quote projects is likely to have continued in the to-be-reported quarter. In the last reported quarter, Request-a-Quote projects increased by approximately 25% year over year. In the home services category, Yelp has been experiencing a strong demand from advertiser customers.

YELP's continued investment in AI and machine learning to optimize advertisers’ budgets by displaying the most relevant ad content to consumers is likely to have attracted a greater number of advertisers in the to-be-reported quarter.

Earnings Whispers for Yelp’s Q4 Results

Our proven model predicts an earnings beat for YELP this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Yelp’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (57 cents per share) and the Zacks Consensus Estimate (51 cents per share), is +12.87%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Yelp’s Zacks Rank: YELP carries a Zacks Rank #3 at present.

Other Stocks to Consider

Here are some other stocks worth considering that have the right combination of elements to beat on earnings this reporting cycle.

Akamai Technologies AKAM has an Earnings ESP of +0.09% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for AKAM’s fourth-quarter earnings per share (EPS) is pegged at $1.52, down by a penny over the past 60 days. AKAM shares have plunged 20.3% over the past year.

Autohome ATHM has an Earnings ESP of +11.32% and carries a Zacks Rank #2 at present.

It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Autohome’s fourth-quarter earnings is pegged at 53 cents per share, unchanged over the past 60 days, indicating a decline of 8.6% from the year-ago quarter’s reported figure. ATHM shares have risen 5.7% over the past year.

Sabre SABR has an Earnings ESP of +25.93% and carries a Zacks Rank #3 at present.

It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Sabre’s fourth-quarter bottom line is pegged at a loss of 7 cents per share, unchanged over the past 60 days. The consensus mark indicates a narrower loss than 12 cents reported in the year-ago quarter. SABR shares have tanked 21.2% over the past year.

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