A Day Of Winners: July 2013 Earnings

Stocks fly high during July, the period of earnings season. July 2013 was the best rallied month since January as a result of better earnings and investor sentiment. The guidance looks better for internet stocks as many of them beat analysts’ expectations.

Ctrip Stock: A True Highflier

Ctrip (CTRP), the Chinese online travel company, announced its quarterly results for June 2013 ending quarter last evening. I see this performance as one of the strongest among the internet sector for this quarter. At a time when other travel companies like Expedia (EXPE) seem to find the going getting tough, Ctrip has recorded nothing short of a record quarter with a 28% YoY revenue jump accompanied by a  8% YoY increase in Earnings per Share. Club with that the 75% YoY increase in Net Income and I don’t think anyone would miss out on identifying this true winner. The YY Inc stock jumped 9.3% in after-hours trading and we won’t be surprised to see this continue when the markets open today. This is a certain on our ‘positive watch-list’ and do follow us so we can help you benefit from the successful growth of this one.
Ctrip Vs Expedia price comparison
Source: Ctrip Vs Expedia stock chart by Amigobulls

Trulia Stock: A Winner Staring You In Your Face?

Online real estate portal Trulia (TRLA) quarterly results were interesting and the company seems well on the path to a successful turnaround from losses to profits in the coming quarters. Trulia revenue jumped 77% YoY basis accompanied by a decrease in net loss per share from $(0.49) for the year ago quarter to $(0.07) for this quarter. Although we love the profits and the cash as we often say, we aren't the ones to miss a winner staring us in the face. In this quarter Trulia continued with its trend of steeply decreasing losses accompanied by sharply increasing revenues. Now isn't this what we call a winner staring us in the face? Do follow us to keep a track of Trulia stock.

IACI Stock: Solid Q2, 2013

IACI (IACI), one of our top stock picks, posted solid second quarter results yet again beating on both the top line and bottom line. IAC Interactive is an online media and internet company which offers services like search engine, dating and match making. With over 150 brands/products, the company’s network of companies is the eighth largest in the world. A few of its popular brands are Ask.com, About.com, Match.com, Homeadvisor.com and Vimeo.com.

IACI revenue chart
Source: IACI revenue chart by Amigobulls

IACI’s Jun 2013 quarter revenue grew 17% YoY to $799.4 million. The company witnessed all-round development across various business segments. Media business grew at an excellent rate of 51% YoY. Gross margin grew, operating margins dipped and net margins expanded. EPS witnessed a solid growth rate of 43% YoY. We continue to have IACI stock in our top stock picks given its solid Q2 2013 performance.

Stamps Stock: Record Profits Announced

Stamps.com (STMP), provider of internet-based postage services, announced record profits with adjusted earnings per share (Adj. EPS) of $0.60 during its second quarterly results announcement, an increase of 50% YoY. Despite company’s reiteration of its full year guidance at earlier levels of $125-135 million, it has increased its EPS’s full year guidance by 5 cents. We are starting to love Stamps.com stock given its improved visibility and confidence in profitability. However, given the small-sized nature of the firm, Stamps.com could be little more risky as compared to other biggies in the internet industry.

Support.com Stock: The Turnaround Continues

Our last look at Support.com (SPRT), the software and cloud based services provider, suggested a turnaround was well underway, and honestly we aren't surprised by the strong quarterly performance the company has delivered in the June 2013 ending quarter. The company delivered another quarter of positive earnings making it three consecutive quarters of positive earnings. The company is well on its way to deliver positive annual earnings for the first time in many years. Support.com revenue increased 16.2% on a YoY basis and the earnings per share of 7 cents was a steep increase from the 2 cent per share loss a year ago. Support.com stock is definitely on our radar as we expect the trend of increasing margins, revenue growth and increasing earnings to continue in the coming quarters.

Shutterfly Stock: Reports Loss Again

Shutterfly (SFLY), a manufacturer and online retailer of photo-based personalized products and services, reported yet another quarter net loss of $11.8 million. Shutterfly revenue totaled $133.5 million, an increase of 35% over last year. At this point, the company does not seem to take any further strategic initiatives to change the typical trend of its business cycles. In our observation, the only quarter this company makes profits is during the Christmas quarter. We are not planning to hold Shutterfly stock as part of our wish list in the near future.

Liveperson Stock: Not A Very Lively Quarter

Liveperson (LPSN), the enhancer of online customer engagement, last evening declared quarterly results for the June ending Q2 2013. The quarter was an average performance with the company failing to beat the Non-GAAP EPS estimate even on the back of a 12.3% YoY jump in revenue. In spite of a poor quarter in terms of the earnings with a 40% YoY fall in Non-GAAP EPS, the company seems to be keeping the markets positively engaged with the stock price moving up by 5.7% in pre-market trading following the earnings call. However we don’t see anything here on which we would bet OUR money.

Open Text Stock: Misses Revenue Estimates

Open Text (OPEX), a software company that allows big enterprises to gain better business insight, posted poor results missing analysts’ estimates on revenue. However, the company just managed to beat EPS at $1.43 against the street’s estimates of $1.42. It’s been forecasted that the company’s broader industries would grow at an aggregate rate of 10% p.a. till 2016. The key area of concern is to convert its existing pipeline in North America.

On the contrary, United Online (UNTD), provider of consumer products and services over the internet, posted poor results witnessing a decline across all parameters. The company announced the exit of its CEO; analysts still doubt if the company would turn around.

Continuing with the success story of WebMD (WBMD), WebMD stock price ticked further up by 3%. Investors believe the web-based healthcare service providers to witness huge traction in the near future as the market is quite under explored, which leaves a room for huge growth opportunities. We have WebMD stock in our positive watch list.

Upcoming Earnings Calls: ValueClick Inc, Open Table (OPEN), SciQuest (SQI), VistaPrint (VPRT), Web.com (WWWW), YY Inc (YY), Blucora (BCOR), Earthlink (ELNK), NIC Inc (EGOV), Move Inc.(MOVE) and Monster Worldwide(MWW)

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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