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Tableau Software (DATA) Q1 Earnings: What's in the Cards?
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Tableau Software Inc. is slated to release first-quarter 2018 results on May 2. The company beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 164.72%.
In the fourth quarter, the company posted non-GAAP earnings of 12 cents per share, which beat the Zacks Consensus Estimate of 3 cents but declined 53.8% from the year-ago quarter.
Revenues of $249.37 million surpassed the Zacks Consensus Estimate of $241 million but declined 1% from the year-ago quarter.
For first-quarter 2018, management expects revenues in the range of $212–$222 million, representing year-over-year growth of 9%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Tableau Software benefits from increasing demand for business analytics tools in the global market. Growth in Asia Pacific and EMEA regions is boosting the top line. The company added 4,700 new customers in the fourth quarter.
The company’s transition to a subscription-based model is a positive. Robust customer growth in the company’s commercial and international businesses is driving results. The company sealed a deal with one of the largest financial services firms in the United States in the last reported quarter.
Tableau Software has undertaken a number of initiatives to boost sales productivity and align marketing efforts to drive growth. The company’s recent partnership with the likes Deloitte shows growing adoption of Tableau's advanced analytics offerings.
Moreover, the launch of the 10.5 version of its flagship software in the quarter will boost demand.
However, the model transition will remain an overhang on the company’s billings and license bookings. Saturation in the company’s domestic market (United States and Canada), which accounts for the majority of its revenues is also a concern.
Also, intensifying competition from Microsoft’s Power BI and other new as well as established players is a major concern for the company. Rise in expenses due to increase in headcount also puts margins under pressure.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Tableau Software has a Zacks Rank #3 and its Earnings ESP is -6.13%. Therefore, our proven model does not conclusively show that the company is likely to deliver a positive surprise this quarter.
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Arrow Electronics, Inc. (ARW - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank #2.
FireEye, Inc. has an Earnings ESP of +6.67% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Tableau Software (DATA) Q1 Earnings: What's in the Cards?
Tableau Software Inc. is slated to release first-quarter 2018 results on May 2. The company beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 164.72%.
In the fourth quarter, the company posted non-GAAP earnings of 12 cents per share, which beat the Zacks Consensus Estimate of 3 cents but declined 53.8% from the year-ago quarter.
Revenues of $249.37 million surpassed the Zacks Consensus Estimate of $241 million but declined 1% from the year-ago quarter.
For first-quarter 2018, management expects revenues in the range of $212–$222 million, representing year-over-year growth of 9%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Tableau Software benefits from increasing demand for business analytics tools in the global market. Growth in Asia Pacific and EMEA regions is boosting the top line. The company added 4,700 new customers in the fourth quarter.
The company’s transition to a subscription-based model is a positive. Robust customer growth in the company’s commercial and international businesses is driving results. The company sealed a deal with one of the largest financial services firms in the United States in the last reported quarter.
Tableau Software has undertaken a number of initiatives to boost sales productivity and align marketing efforts to drive growth. The company’s recent partnership with the likes Deloitte shows growing adoption of Tableau's advanced analytics offerings.
Moreover, the launch of the 10.5 version of its flagship software in the quarter will boost demand.
However, the model transition will remain an overhang on the company’s billings and license bookings. Saturation in the company’s domestic market (United States and Canada), which accounts for the majority of its revenues is also a concern.
Also, intensifying competition from Microsoft’s Power BI and other new as well as established players is a major concern for the company. Rise in expenses due to increase in headcount also puts margins under pressure.
Tableau Software, Inc. Price and EPS Surprise
Tableau Software, Inc. Price and EPS Surprise | Tableau Software, Inc. Quote
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Tableau Software has a Zacks Rank #3 and its Earnings ESP is -6.13%. Therefore, our proven model does not conclusively show that the company is likely to deliver a positive surprise this quarter.
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Seagate Technology PLC (STX - Free Report) has an Earnings ESP of +3.43% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arrow Electronics, Inc. (ARW - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank #2.
FireEye, Inc. has an Earnings ESP of +6.67% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>