Will New Products, Expansion Aid GoDaddy (GDDY) Q2 Earnings?

GoDaddy Inc. GDDY is set to report second-quarter 2018 results on Aug 2.

In the last reported quarter, the company delivered in-line results, with an average four-quarter positive surprise of 88.9%.

The company's shares have gained 78.7% in the past 12 months, outperforming the industry’s growth of 45.7%.

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

GoDaddy generates revenues from three segments — Domain, Hosting and Presence, and Business Applications.

All the segments are expected to perform well in the second quarter, driven by increasing investments in products and technology platform, as well as strong customer growth. The company is expanding internationally by investing in technology, marketing programs and customer service teams. Growing international expansion and the shift toward dynamic online presence for small businesses are likely to play an important role in the to-be-reported quarter.

In the last reported quarter, Business Applications revenues were $101.7 million, increasing 10.8% sequentially and 44.1% from the year-ago quarter. The Zacks Consensus Estimate for the quarter to be reported is pegged at $102.0 million.

Also, Domain revenues increased 3.6% sequentially and 21.1% year over yearin the first quarter. The Zacks Consensus Estimate for Domain revenues is pegged at $289 million.

Hosting and Presence revenues were $239.8 million in the first quarter, increasing 4.8% sequentially and 34.5% from the prior-year quarter. The Zacks Consensus Estimate is pegged at $246.0 million for the second quarter. The company made efforts to offer advanced but simplified solutions in a bid to expand its small business clientele, thereby boosting Hosting and Presence revenues.

However, increasing competition in domain, hosting and presence markets from companies like Endurance, Amazon and Google could impact its results in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

GoDaddy has a Zacks Rank #2 and an Earnings ESP of +2.88%, indicating a likely positive earnings surprise.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

GoDaddy Inc. Price and EPS Surprise

 

GoDaddy Inc. Price and EPS Surprise | GoDaddy Inc. Quote

Other Stocks to Consider

Here are some other stocks you may want to consider, as our model shows that thesealso have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Groupon, Inc. GRPN has an Earnings ESP of +59.68 and sports a Zacks Rank #1.

AMETEK AME has an Earnings ESP of +0.43% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies A has an Earnings ESP of +0.88% and a Zacks Rank #3.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Groupon, Inc. (GRPN) : Free Stock Analysis Report
 
GoDaddy Inc. (GDDY) : Free Stock Analysis Report
 
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
 
AMETEK, Inc. (AME) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research