Earnings season always lifts the lid on corporate performance, offering investors a rare glimpse behind the scenes. The Q4 2023 earnings cycle looms large, offering a pivotal juncture for investors seeking cues about the broader trajectory in 2024.
Expect some curveballs, and Netflix NFLX, Chipotle Mexican Grill CMG, and MercadoLibre MELI could be well-positioned to deliver surprises. All three carry a positive Zacks Earnings ESP Score ahead of their earnings reports.
Chipotle Mexican Grill
Chipotle Mexican Grill, a Zacks Rank #2 (Buy), operates casual and fresh Mexican restaurant chains. The stock has displayed relative strength in 2024, with 1.5% growth versus the S&P 500’s 0.4% decline.
Analysts are optimistic, with the Zacks Consensus EPS Estimate at $9.64, up 2% since October. This figure signifies an anticipated 16% surge from the same period last year.
The company’s top-line is also projected to witness healthy expansion, with a quarterly revenue estimate of $2.5 billion, implying a 14% climb and a 1.4% uptick since October. CMG has benefited from cost relief and sustained business momentum, underpinning its robust growth.
Netflix
Netflix is a streaming powerhouse that has enamored investors over the past decade with its remarkable outperformance. Currently graded a Zacks Rank #2 (Buy), earnings forecasts are on the rise.
The Zacks Consensus EPS Estimate of $2.20 reflects quadruple-digit year-over-year growth of over 1700%, while the $8.7 billion quarterly revenue estimate suggests an 11% surge.
The pivotal metric for investors – subscribers – remains a focal point. Paid Net Membership additions totaled 9 million in the most recent quarter, surpassing expectations and propelled by the embrace of the company’s new ad-supported plans. Impressively, ad-supported memberships soared 70% quarter-over-quarter.
MercadoLibre
MercadoLibre is a dominant force in the South American e-commerce landscape. It leads the market in e-commerce in several countries, with a robust presence in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico, and Uruguay based on unique visitors and page views.
The company is poised for substantial growth, with consensus earnings and revenue estimates indicating increases of 105% and 38%, respectively. MELI has consistently outperformed earnings expectations, surpassing the consensus EPS estimates by an average of 33% over the last four quarters.
Bottom Line
While earnings season can be a frenetic period, it offers a compelling opportunity for investors to gain deeper insights into corporate performance.
All three stocks – Netflix NFLX, Chipotle Mexican Grill CMG, and MercadoLibre MELI – have the potential to pleasantly surprise investors, as suggested by their positive Zacks Earnings ESP Scores.