Home services online marketplace ANGI (NASDAQ: ANGI) will be reporting earnings tomorrow afternoon. Here's what to expect.
Last quarter Angi reported revenues of $441.5 million, up 6.18% year on year, missing analyst expectations by 0.67%. It was a weak quarter for the company, with declining number of users and slow revenue growth. The company reported 6.02 million service requests, down 12.7% year on year.
Is Angi buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Angi's revenue to decline 11.9% year on year to $384.3 million, a further deceleration on the 12.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
Looking at Angi's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Lyft delivered top-line growth of 14.3% year on year, beating analyst estimates by 1.89% and Coursera reported revenues up 22.6% year on year, exceeding estimates by 6.39%. Lyft traded down 10.8% on the results, Coursera was flat on the results. Read our full analysis of Lyft's results here and Coursera's results here.
There is still much uncertainty in the markets. The Federal Reserve's hawkish stance on rates, meant to tame inflation, remains a key market narrative. There is an added wrinkle now with troubles in the banking sector, triggered by Silicon Valley Bank's fairly sudden and surprising collapse. Given these, the question is whether higher rates (which dampen economic activity) and potentially less lending from the overall banking sector will trigger a recession. While some tech stocks have recovered year-to-date, most are still well off their 52-week highs. Angi is up 10.6% over the last month, and is heading into the earnings with analyst price target of $4.5, compared to share price of $2.41.
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The author has no position in any of the stocks mentioned.