Why Yelp Inc (YELP) Stock Is Trading Up By 7.11% Today

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Why Yelp Inc (YELP) Stock Is Trading Up By 7.11% Today

Yelp announced upward revision in 1QFY15 and FY15 guidance, following which the stock traded up by around 7.11%

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Published: Feb 10, 2015 at 11:22 am EST

Yelp Inc (NYSE:YELP) announced on Tuesday that it was raising the guidance for the first quarter of fiscal 2015 (1QFY15) and financial year 2015 (FY15) revenues. Following the announcement, the stock was trading up by around 7.11% at $45.3 as of 10:45 AM EST.

The company increased its revenue target for 1QFY15 from a $114-116 million range to the $118-120.5 million range. Analyst had been expecting the company to report revenue of around $115.69 million for the quarter.

Yelp also expects to report an increase in the amortization expense of intangible assets as well as in a stock-based compensation option. The weighted average diluted shares are expected to be 79 million shares at the end of the first quarter of the year.

The local business company also raised its FY15 revenue and earnings before interest, expense, depreciation and amortization (EBITDA) guidance. The company raised the revenue guidance for the full year from a $538-538 million range to a bound range of $574 million to $579 million, above market consensus of $542 million.

Non-GAAP EBITDA figure is also revised upward, from a $100-103 million range to a bound range of $102 million to $105 million, which also left behind market estimates of around $542.7 million. Yelp’s expectation for the weighted average of diluted equity is around 80 million shares for FY15.

Yelp announced its 4Q financial performance on Thursday marking beat on earnings per share (EPS) and revenue. Revenue was reported to be $109.9 million showing a 56% year-over-year (YoY) increase, while EPS was reported to be 8 cents, reporting a beat by 1 cent.

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Joshua Griffin