Why Yelp Is The 'Most Interesting' Earnings Report This Quarter

Estimize CEO Leigh Drogen called Yelp Inc (NYSE: YELP) the "most interesting" report this quarter, noting that it is the first time that Yelp's revenue has had a negative delta, meaning the rate of growth is slowing. Further, Drogen said the Estimize consensus is below Wall Street's, likely pointing at weakness in local numbers. When you see a consensus that's below the Street, "especially for a growth stock," it shows that sentiment is "very poor," Drogen added.

The Estimize consensus says that revenues will be at $119.41 million, slightly below $119.44 million Street expectations and the $119.5 million company guidance.

Related Link: Yelp Shares Lower As Earnings Loom; What's The Crowd & Experts Expect?

Estimize data shows that when revenue expectations are below the Wall Street consensus, the Estimize data is 78 percent more accurate, according to Drogen. On earnings, Estimize data says that EPS will be at $0.02, slightly above the $0.01 expectations on the Street.

According to Drogen's comments, investors should closely watch Yelp's local numbers.

Yelp saw steep declines after reporting Q4 guidance, dropping from $57.47 to $42.17 in two days. The stock has since steadied and moved back above $50 per share. Yelp reports earnings Wednesday after the closing bell.