Wunderlich Previews RetailMeNot Earnings

Wunderlich previewed earnings for RetailMeNot Inc SALE Monday and maintained a Buy rating on the stock with a $28 price target.

Analyst Blake T. Harper expected Q1 revenue of $58.7 million with EPS of $0.17. Consensus expectations included EPS of $0.15, also on revenue of $58.7 million.

The Wunderlich estimate for EBITDA was $15.2 million versus the consensus of $15.4 million.

The firm anticipated that 2015 revenue would come in at $264.7 million, in line with consensus, with EPS of $1.03, also in line with consensus estimates.

Harper felt the “RetailMeNot story will continue to focus on mobile monetization heading into seasonally strong 2H.”

The analyst expected the company to “benefit from growing mobile app traffic for shopping and mobile commerce conversion rates increasing from low single digits.”

Impact from the Google Inc GOOG GOOGL search update that prioritizes mobile-optimized websites remained unclear in the near term, according to Harper, “although RetailMeNot's website has been mobile-optimized for a long time.”

The Google search update “should be a catalyst for retailers to implement mobile-optimized sites, which should be a tailwind for the conversion rates and mobile commerce sales over the longer term,” Harper wrote.

The analyst also expected some euro and GBP FX headwinds as 20 percent of the company’s revenues came from international markets, the three largest being the U.K., France and Canada.

The company reports Q1 earnings on Tuesday before the market open.

Heading into its earnings release, RetailMeNot traded at $17.49, down 1.07 percent.