TheStreet.com (TSCM) Earnings Preview

July 30, 2008 5:48 PM EDT

Tomorrow, the TheStreet.com (Nasdaq: TSCM) is scheduled to release Q2 earnings. Wall Street is expecting the TheStreet.com to report earnings of $0.07 a share and $19.29 million in revenue. Last quarter, TheStreet.com reported EPS of $0.07, 3 cents below analyst estimates.

Will TheStreet.com disappoint or exceed analysts' lowered expectations?

Reasons It Will Exceed
-Larger Ad Saleforce produces more revenue per page
-TheStreet TV video attracting larger advertising budgets from clients like Pfizer
-Lenny "Nails" Dykstra subscription revenue produces a boost to earnings
-TheStreet.com benefits from acquisitions it has made over the past 18 months
-Page views increase
-Promotions.com produces larger revenue numbers because it has more time to focus on its main business versus building web
applications for TheStreet.com related businesses
-Low expectations
-Cramer receiving exposure on Sunday night on NBC could provide an ancillary benefit for TSCM
-TheStreet's diversification may prove to be extremely beneficial
-Increased ad revenue from direct marketing to email subscribers

Reasons It Will Miss
-Wall Street layoffs may have a negative impact on TheStreet.com's subscription businesses
-New growth driver, MainStreet.com, maybe having difficulties as TSCM recently changed its management
-Financial online ad revenues drop in a tough economic environment
-Top talent who left TheStreet, including: Mark DeCambre, Simon Constable, Nat Worden, Brittany Umar, and various RealMoney writers
-In a down market, people may read less financial news
-Compete.com showing lower traffic trends
-Users trying to get comfortable with the new TheStreet.com website

Above are some of the reasons why tomorrow could either be a good or bad day for TheStreet.com.

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At the time of this publication, the writer held a small short position in TSCM.


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