Wunderlich Previews The Hottest Tech Earnings This Week

Wunderlich Securities expects this week to be a strong week for high-growth tech companies that report earnings on Tuesday, Wednesday and Thursday. Notably, Wunderlich analysts said they are optimistic Twitter Inc TWTR, LinkedIn Corp LNKD, Yelp Inc YELP, and GrubHub Inc GRUB can deliver strong earnings reports.

Here's how Wunderlich said each of the earnings reports will play out:

Twitter

Twitter will "benefit from growing adoption of its platform from advertisers and a widening reach of users from its homepage redesign," Wunderlich argued. Advertiser adoption will allow the company to "beat consensus and guidance." The analysts cautioned, however, that though the reach and monetization is improving, "a lot of good news is already priced in."

The analysts said that even though they are bullish on the fundamental story, "it appears to be reflected in the valuation."

Related Link: Apple & Other Earnings Expected To Dominate The Week Of April 27

GrubHub

Wunderlich forecasted that GrubHub will have gross food sales of $586 million and nearly 235,000 daily average Grubs. Following two recent acquisitions, the analysts said that GrubHub will expand its delivery network, allowing the company to drive "incremental demand." Like Twitter, however, Wunderlich said GrubHub's stock price reflects the better-than-expected results.

Yelp

Wunderlich said it expects Yelp's active account growth to be the "key" that could help the stock rebound. There could be "some noise" from a "negative documentary and takeover rumors," though Wunderlich said it does not expect that to impact local revenues. Analysts expected active business accounts to grow by 6,000 and local advertising revenues to grow by 50 percent year-over-year.

LinkedIn

Wunderlich said LinkedIn will "continue to execute well" and expressed high expectations for the company's Talent Solutions and Sales Navigator segments. The expectations may be large, but Wunderlich said that the company will meet them. Specifically, Wunderlich pointed to Lynda.com, which the analysts said should be a "positive move to expand its educational and training video content."