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Atlassian (TEAM): Will it Spring a Surprise in Q2 Earnings?
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Atlassian Corporation Plc (TEAM - Free Report) is set to report second-quarter fiscal 2017 results on Jan 19. Last quarter, the company posted a positive earnings surprise of 100%. Let’s see how things are shaping up for this announcement.
Factors at Play
Atlassian is engaged in designing, developing, licensing and maintenance of software and the provisioning of software hosting services. It offers tools for software developers consisting of FishEye, Bamboo and SourceTree.
The company recently acquired Trello, a cloud collaboration services provider that has more than 19 million users.
The acquisition will not only broaden Atlassian’s leadership position but will also enhance its client base, thereby boosting its top- and bottom-line performance. We anticipate benefits of the acquisition to be reflected in the to-be reported quarter results.
Furthermore, we believe that continuous investments in product development (mainly the launch of three purpose-built versions of JIRA products) and a significant number of customers on an active subscription or maintenance agreement are a few of the positives, which may drive second-quarter results.
Moreover, for the to-be reported quarter, the company expects total revenue in the range of $142.5 million and $144.5 million.
Nonetheless, a volatile spending atmosphere and competition from other privately held players in the space such as Dynport and PBworks remain concerns.
Our proven model does not conclusively show that Atlassian is likely to beat the Zacks Consensus Estimate in its upcoming release. 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. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for Atlassian is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 2 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Atlassian has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter:
Texas Instruments Incorporated (TXN - Free Report) ,with an Earnings ESP of +1.24% and a Zacks Rank #2.
CSX Corporation (CSX - Free Report) , with an Earnings ESP of +2.04% and a Zacks Rank #2.
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How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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Atlassian (TEAM): Will it Spring a Surprise in Q2 Earnings?
Atlassian Corporation Plc (TEAM - Free Report) is set to report second-quarter fiscal 2017 results on Jan 19. Last quarter, the company posted a positive earnings surprise of 100%. Let’s see how things are shaping up for this announcement.
Factors at Play
Atlassian is engaged in designing, developing, licensing and maintenance of software and the provisioning of software hosting services. It offers tools for software developers consisting of FishEye, Bamboo and SourceTree.
The company recently acquired Trello, a cloud collaboration services provider that has more than 19 million users.
The acquisition will not only broaden Atlassian’s leadership position but will also enhance its client base, thereby boosting its top- and bottom-line performance. We anticipate benefits of the acquisition to be reflected in the to-be reported quarter results.
Furthermore, we believe that continuous investments in product development (mainly the launch of three purpose-built versions of JIRA products) and a significant number of customers on an active subscription or maintenance agreement are a few of the positives, which may drive second-quarter results.
Moreover, for the to-be reported quarter, the company expects total revenue in the range of $142.5 million and $144.5 million.
Nonetheless, a volatile spending atmosphere and competition from other privately held players in the space such as Dynport and PBworks remain concerns.
Atlassian Corporation PLC Price and EPS Surprise
Atlassian Corporation PLC Price and EPS Surprise | Atlassian Corporation PLC Quote
Earnings Whispers
Our proven model does not conclusively show that Atlassian is likely to beat the Zacks Consensus Estimate in its upcoming release. 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. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for Atlassian is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 2 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Atlassian has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies you may want to consider as our model shows that they too have the right combination of elements to post an earnings beat this quarter:
Seagate Technology plc (STX - Free Report) , with an Earnings ESP of +1.87% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Instruments Incorporated (TXN - Free Report) ,with an Earnings ESP of +1.24% and a Zacks Rank #2.
CSX Corporation (CSX - Free Report) , with an Earnings ESP of +2.04% and a Zacks Rank #2.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>