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Can HubSpot (HUBS) Retain Its Beat Streak in Q2 Earnings?
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HubSpot, Inc. (HUBS - Free Report) is slated to release second-quarter 2018 results on Aug 1.
The company has recorded an impressive streak of positive earnings surprises. In fact, HubSpot surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of a whopping 183.2%.
Notably, the company’s stock has gained 44.7% year to date, substantially outperforming the 15.7% rally of the industry it belongs to.
First-Quarter Performance
In first-quarter 2018, the company delivered non-GAAP earnings of 15 cents per share compared with 3 cents per share in the year-ago quarter. The figure also beat the Zacks Consensus Estimate of 11 cents per share.
Revenues of $114.6 million surged 39% year over year in first-quarter 2018 driven by expanding customer base. Additionally, the figure surpassed the Zacks Consensus Estimate of $110 million as well as the guided range of $109.2-$110.2 million.
What to Expect?
HubSpot forecasts revenues in the range of $117-$118 million for second-quarter 2018. Additionally, analysts polled by Zacks project revenues of roughly $117.6 million, up approximately 32% from the year-ago quarter.
Moreover, HubSpot anticipates non-GAAP net income per share to be in the range of 14-16 cents. The Zacks Consensus Estimate is currently pegged at 16 cents per share, , representing a surge of 128.6% from the year-ago quarter.
The Zacks Consensus Estimate for Subscription revenues is $112 million, compared with the year-ago figure of $84 million. Further, the Zacks Consensus Estimate for Professional Services and Other segment revenues is $5.64 million, compared with the year-ago figure of $4.73 million.
Factors Likely to Influence Q2 Performance
HubSpot’s inbound marketing and sales software suite is gaining wide acceptance. In the last reported quarter, total customers increased 44% year over year to 44,894. Moreover, the rapid adoption of HubSpot CRM offering is likely to boost top-line growth.
Recently the company launched ServiceHub. The new solution is part of HubSpot's free CRM and offers companies comprehensive details of a customer's journey, eventually increasing customized solutions.
HubSpot also introduced new Slack integration. The new offering is aimed at transforming Slack conversations to HubSpot CRM Tasks consequently enhancing productive tasks.
Additionally, the acquisitions of Motion AI and Kemvi reflect the company’s focus on integrating artificial intelligence (“AI”) in its offerings, as well as expanding solutions portfolio.
Content Strategy, a tool to optimize search engine optimization (“SEO”) technique, is a positive for the company’s product suite and top-line.
HubSpot’s increasing initiatives in the small and medium business (“SMB”) space bode well. The company aims to aid the SMB companies which are striving to digitally transform their ways of marketing. Markedly, the freemium model of HubSpot is tailor-made for SMB users.
In the recent past, HubSpot announced that the company will adopt Google Cloud in order to strengthen its international cloud infrastructure. The extended partnership with Google is expected to aid the company rapidly penetrate the SMB market in Europe.
Moreover, adoption of Google cloud is anticipated to lower costs, which is likely to boost profitability. Additionally, the partnership will enable the company to invest more in its ongoing Google Cloud product integrations.
We believe portfolio expansion and collaborations will positively impact the second-quarter results. Moreover, integration of its various in house offerings is likely to improve subscription levels, consequently bolstering top-line.
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.
HubSpot has a Zacks Rank #3 and an Earnings ESP of +9.68%, which makes us reasonably confident of an earnings beat.
Other Stocks That Warrant a Look
Here are a couple of stocks in the same sectorworth considering as our model shows that these too have the right combination of elements to deliver an earnings beat in the upcoming releases.
Qorvo, Inc. (QRVO - Free Report) and Cirrus Logic, Inc. (CRUS - Free Report) , both carrying a Zacks Rank #3, have an Earnings ESP of +0.44% and +33.33%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Can HubSpot (HUBS) Retain Its Beat Streak in Q2 Earnings?
HubSpot, Inc. (HUBS - Free Report) is slated to release second-quarter 2018 results on Aug 1.
The company has recorded an impressive streak of positive earnings surprises. In fact, HubSpot surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average positive earnings surprise of a whopping 183.2%.
Notably, the company’s stock has gained 44.7% year to date, substantially outperforming the 15.7% rally of the industry it belongs to.
First-Quarter Performance
In first-quarter 2018, the company delivered non-GAAP earnings of 15 cents per share compared with 3 cents per share in the year-ago quarter. The figure also beat the Zacks Consensus Estimate of 11 cents per share.
Revenues of $114.6 million surged 39% year over year in first-quarter 2018 driven by expanding customer base. Additionally, the figure surpassed the Zacks Consensus Estimate of $110 million as well as the guided range of $109.2-$110.2 million.
What to Expect?
HubSpot forecasts revenues in the range of $117-$118 million for second-quarter 2018. Additionally, analysts polled by Zacks project revenues of roughly $117.6 million, up approximately 32% from the year-ago quarter.
Moreover, HubSpot anticipates non-GAAP net income per share to be in the range of 14-16 cents. The Zacks Consensus Estimate is currently pegged at 16 cents per share, , representing a surge of 128.6% from the year-ago quarter.
The Zacks Consensus Estimate for Subscription revenues is $112 million, compared with the year-ago figure of $84 million. Further, the Zacks Consensus Estimate for Professional Services and Other segment revenues is $5.64 million, compared with the year-ago figure of $4.73 million.
Factors Likely to Influence Q2 Performance
HubSpot’s inbound marketing and sales software suite is gaining wide acceptance. In the last reported quarter, total customers increased 44% year over year to 44,894. Moreover, the rapid adoption of HubSpot CRM offering is likely to boost top-line growth.
Recently the company launched ServiceHub. The new solution is part of HubSpot's free CRM and offers companies comprehensive details of a customer's journey, eventually increasing customized solutions.
HubSpot also introduced new Slack integration. The new offering is aimed at transforming Slack conversations to HubSpot CRM Tasks consequently enhancing productive tasks.
Additionally, the acquisitions of Motion AI and Kemvi reflect the company’s focus on integrating artificial intelligence (“AI”) in its offerings, as well as expanding solutions portfolio.
Content Strategy, a tool to optimize search engine optimization (“SEO”) technique, is a positive for the company’s product suite and top-line.
HubSpot’s increasing initiatives in the small and medium business (“SMB”) space bode well. The company aims to aid the SMB companies which are striving to digitally transform their ways of marketing. Markedly, the freemium model of HubSpot is tailor-made for SMB users.
In the recent past, HubSpot announced that the company will adopt Google Cloud in order to strengthen its international cloud infrastructure. The extended partnership with Google is expected to aid the company rapidly penetrate the SMB market in Europe.
Moreover, adoption of Google cloud is anticipated to lower costs, which is likely to boost profitability. Additionally, the partnership will enable the company to invest more in its ongoing Google Cloud product integrations.
We believe portfolio expansion and collaborations will positively impact the second-quarter results. Moreover, integration of its various in house offerings is likely to improve subscription levels, consequently bolstering top-line.
HubSpot, Inc. Price and EPS Surprise
HubSpot, Inc. Price and EPS Surprise | HubSpot, Inc. Quote
Favorable ESP
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.
HubSpot has a Zacks Rank #3 and an Earnings ESP of +9.68%, which makes us reasonably confident of an earnings beat.
Other Stocks That Warrant a Look
Here are a couple of stocks in the same sectorworth considering as our model shows that these too have the right combination of elements to deliver an earnings beat in the upcoming releases.
Arrow Electronics, Inc. (ARW - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qorvo, Inc. (QRVO - Free Report) and Cirrus Logic, Inc. (CRUS - Free Report) , both carrying a Zacks Rank #3, have an Earnings ESP of +0.44% and +33.33%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>