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Model N (MODN) Q4 Earnings: What's in the Cards this Time?
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Model N, Inc. (MODN - Free Report) is scheduled to report fourth-quarter fiscal 2016 results on Nov 7. Last quarter, the company posted a positive earnings surprise of 6.45%. Notably, the stock has outperformed the Zacks Consensus Estimate in the preceding four quarters with an average positive earnings surprise of 8.19%.
Let's see how things are shaping up for this announcement.
Factors to Consider
Model N provides revenue management solutions for the life science and technology industries. It develops applications such as managed care and government pricing for life science companies and channel incentives based on design wins for technology companies.
The company reported strong year-over-year growth in revenues (up 16.7%) in the third quarter of fiscal 2016. Reported revenues were also above the Zacks Consensus Estimate. Coming to the bottom line, although the company posted a loss of 29 cents for the quarter, it was narrower than the Zacks Consensus Estimate of a loss of 31 cents.
We are optimistic about the company’s strategic acquisitions, product launches and deal wins, which should positively impact fiscal fourth-quarter results. However, pricing pressure caused by stiff competition from SAP SE (SAP - Free Report) , I-Many Inc. and Symphony Teleca Corp. may impact profitability in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Model N is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP for Model N is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 26 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Model N currently has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions.
Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Asure Software Inc. (ASUR - Free Report) , with an Earnings ESP of +14.29% and a Zacks Rank #3.
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Model N (MODN) Q4 Earnings: What's in the Cards this Time?
Model N, Inc. (MODN - Free Report) is scheduled to report fourth-quarter fiscal 2016 results on Nov 7. Last quarter, the company posted a positive earnings surprise of 6.45%. Notably, the stock has outperformed the Zacks Consensus Estimate in the preceding four quarters with an average positive earnings surprise of 8.19%.
Let's see how things are shaping up for this announcement.
Factors to Consider
Model N provides revenue management solutions for the life science and technology industries. It develops applications such as managed care and government pricing for life science companies and channel incentives based on design wins for technology companies.
The company reported strong year-over-year growth in revenues (up 16.7%) in the third quarter of fiscal 2016. Reported revenues were also above the Zacks Consensus Estimate. Coming to the bottom line, although the company posted a loss of 29 cents for the quarter, it was narrower than the Zacks Consensus Estimate of a loss of 31 cents.
We are optimistic about the company’s strategic acquisitions, product launches and deal wins, which should positively impact fiscal fourth-quarter results. However, pricing pressure caused by stiff competition from SAP SE (SAP - Free Report) , I-Many Inc. and Symphony Teleca Corp. may impact profitability in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Model N is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP for Model N is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 26 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Model N currently has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions.
MODEL N INC Price and EPS Surprise
MODEL N INC Price and EPS Surprise | MODEL N INC Quote
Stocks to Consider
Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Stratasys Ltd. (SSYS - Free Report) , with an Earnings ESP of +41.67% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software Inc. (ASUR - Free Report) , with an Earnings ESP of +14.29% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>