Online legal service provider LegalZoom (NASDAQ: LZ) will be reporting earnings tomorrow after market close. Here’s what you need to know.
LegalZoom beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $161.7 million, up 1.9% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ number of subscription units estimates. It reported 1.77 million users, up 14.3% year on year.
Is LegalZoom a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting LegalZoom’s revenue to grow 1.7% year on year to $177.2 million, slowing from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LegalZoom has missed Wall Street’s revenue estimates twice over the last two years.
Looking at LegalZoom’s peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 83%, beating analysts’ expectations by 5.2%, and Etsy reported flat revenue, topping estimates by 1.4%. Etsy traded down 8% following the results.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 18% on average over the last month. LegalZoom is down 1.9% during the same time and is heading into earnings with an average analyst price target of $9.43 (compared to the current share price of $7.35).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
