Yelp Inc (NASDAQ:YELP) has recently released its earnings report for the third quarter of this year which ended in September. The company has reported a loss of 4 cents for the quarter, the total revenue for the quarter stood at $61.2 million. The latest days of trading saw the share prices end the day at $68.83. Analysts who are following Yelp said that they were expecting higher earnings by $0.01 than the consensus. The expected revenue for the three months was at 59.5 million USD for the three months. In the same period from last year, Yelp made 1 cent per share on revenue of 36.4 million.
This year is expected to be the first year that Yelp turns out a profit. The company lost 5 cents per share for the year 2012 but analysts’ expectations remain high from the company. It is expected to make 22 cents for every share in the entire course of this year. Analysts also expect that earnings for the company will finally take off once it starts to hit profit rich waters. Analysts are hopeful for 2014 for Yelp as they hope that it will make at least 55 cents for every share. The internet company is focusing on expanding its reach into local advertising based businesses. While nobody has done this kind of a thing before, Yelp has to have the best chance of realizing it.
Yelp is worth more than $4 billion today but the company has lost a lot of money in 2012 and its share prices are priced more than 300 times in the expected earnings from 2013. It is a company that is prone to not following expectations from analysts but that can’t be good all the time. This also means that the stock for the company is expected to climb in value by most investors for years to come.
