Web.com (WEB) To Report Q1 Earnings: What's In The Cards?
Zacks Investment Research | Apr 30, 2018 10:45PM ET
Web.com Group Inc. (NASDAQ:WEB) is scheduled to release first-quarter 2018 results on May 3. The company has delivered an average positive earnings surprise of 1.40% in the trailing four quarters.
Moreover, the online marketing services provider posted adjusted revenues of $191 million in fourth-quarter 2017 compared with $189 million in the year-ago period.
For first-quarter 2018, Web.com projects non-GAAP revenues to be in the range of $184–$187 million.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Web.com’s top line is expected to be driven by Web Brand Networks and Premium Services. The integration of Yodle’s LocalMax into Lead Stream is driving the Premium Services business.
The company’s TORCHx and Lighthouse 360 solutions along with Yodle’s LocalMax offering will enable it to bring in more customers and therefore drive growth.
Notably, Web.com has been undertaking strategic acquisitions to boost its operations. The company’s acquisition of Donweb.com is helping it to expand in the Latin American market, which has solid growth opportunities. Scoot acquired in 2014 is boosting its growth in the United Kingdom.
Brand awareness initiatives like advertising campaigns to promote Lead Stream are helping it to expand its foothold in the global market.
However, decline in overall retail business and decreasing net new subscribers are headwinds. Also, an increasingly competitive business environment for legacy domains and DIY websites remain concerns.
Web.com Group, Inc. Price and EPS Surprise
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