We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for Synchronoss (SNCR) This Earnings Season?
Read MoreHide Full Article
Synchronoss Technologies (SNCR - Free Report) is scheduled to report second-quarter 2020 results on Aug 10.
The Zacks Consensus Estimate for quarterly revenues stands at $75 million, indicating a 3.7% decline from the year-ago quarter. The consensus mark for bottom-line results suggests a loss per share of 25 cents, narrower than the 28 cents reported in the year-ago quarter.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average surprise being 46.9%.
Let’s see how things have shaped up for the upcoming announcement.
Synchronoss Technologies, Inc. Price and Consensus
Synchronoss’ second-quarter performance is expected to have been hurt by business disruptions caused by the COVID-19 pandemic. Retail store operators make up for significant contribution to the company’s revenues. However, as retail stores across the world remained closed during most of the March-June period, the company’s top line might have been adversely impacted during the second quarter.
However, the firm’s large deals with the likes of Verizon, Sprint, AT&T, British Telecom, Vodafone, Comcast, the three Japanese carriers, and others are likely to have helped weather the pandemic-induced economic downturn. The company generates about 70% of its recurring revenues from the aforementioned relationships, which provides it a solid base of revenues even during uncertain times.
Additionally, its cost-saving initiatives are likely to have boosted Synchronoss’ profitability during the quarter under review. The company’s cost-cutting measures include executives’ pay cut, reduction in workforce and contractors, facilities rationalizations, renegotiation of contracts with vendors and suppliers, and merit increase and bonus deferrals.
The company expects these measures to deliver approximately $55 million in annualized operating expenses reductions. Of the total, Synchronoss projects $45 million to be realized during the current year.
What Our Model Says
Our proven model does not predictan earnings beat for Synchronoss this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Synchronoss currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6 % and currently carries a Zacks Rank of 2.
Benefitfocus has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
What's in Store for Synchronoss (SNCR) This Earnings Season?
Synchronoss Technologies (SNCR - Free Report) is scheduled to report second-quarter 2020 results on Aug 10.
The Zacks Consensus Estimate for quarterly revenues stands at $75 million, indicating a 3.7% decline from the year-ago quarter. The consensus mark for bottom-line results suggests a loss per share of 25 cents, narrower than the 28 cents reported in the year-ago quarter.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average surprise being 46.9%.
Let’s see how things have shaped up for the upcoming announcement.
Synchronoss Technologies, Inc. Price and Consensus
Synchronoss Technologies, Inc. price-consensus-chart | Synchronoss Technologies, Inc. Quote
Key Factors
Synchronoss’ second-quarter performance is expected to have been hurt by business disruptions caused by the COVID-19 pandemic. Retail store operators make up for significant contribution to the company’s revenues. However, as retail stores across the world remained closed during most of the March-June period, the company’s top line might have been adversely impacted during the second quarter.
However, the firm’s large deals with the likes of Verizon, Sprint, AT&T, British Telecom, Vodafone, Comcast, the three Japanese carriers, and others are likely to have helped weather the pandemic-induced economic downturn. The company generates about 70% of its recurring revenues from the aforementioned relationships, which provides it a solid base of revenues even during uncertain times.
Additionally, its cost-saving initiatives are likely to have boosted Synchronoss’ profitability during the quarter under review. The company’s cost-cutting measures include executives’ pay cut, reduction in workforce and contractors, facilities rationalizations, renegotiation of contracts with vendors and suppliers, and merit increase and bonus deferrals.
The company expects these measures to deliver approximately $55 million in annualized operating expenses reductions. Of the total, Synchronoss projects $45 million to be realized during the current year.
What Our Model Says
Our proven model does not predictan earnings beat for Synchronoss this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Synchronoss currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Cogent Communications Holdings (CCOI - Free Report) has an Earnings ESP of +11.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6 % and currently carries a Zacks Rank of 2.
Benefitfocus has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>