Atlassian (TEAM - Free Report) is scheduled to report second-quarter fiscal 2023 results on Feb 2.
Atlassian projects fiscal second-quarter revenues between $835 million and $855 million ($845 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $842.5 million, suggesting growth of 22.4% from the year-ago reported figure.
For second-quarter earnings, the Zacks Consensus Estimate is pegged at 30 cents per share, suggesting a 40% decline from the 50 cents reported in the year-ago period.
Atlassian surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 19.3%.
Factors at Play
The rising adoption of TEAM’s cloud-based solutions and the massive digitalization trend in organizations, along with the growing hybrid working trend, are likely to have favored the company’s fiscal second-quarter performance. Growing demand for the company’s cloud products from the new and existing clients using on-premises products might have acted as a tailwind.
The increasing traction for core products like Jira Software and Confluence Cloud and the rising adoption of new products like Jira Service Management may have acted as key catalysts. An improvement in product quality and performance, multiple product launches and increased pricing are likely to have boosted the firm’s performance as well.
Robust growth in subscription revenues, aided by the solid uptake of the company’s subscription-based offerings, is likely to get reflected in the to-be-reported quarter’s results. Atlassian expects a non-GAAP gross margin of 83-84% and non-GAAP operating margin of around 13% in the second-quarter fiscal 2023.
However, increased investments in its systems and infrastructure, research & development and sales and marketing initiatives might have weighed on the bottom line in the first quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Atlassian this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (33 cents per share) and the Zacks Consensus Estimate (30 cents per share), is +8.91%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TEAM carries a Zacks Rank #3.
Other Stocks With Favorable Combination
Per our model, Expedia Group (EXPE - Free Report) , Lumentum (LITE - Free Report) and PattersonUTI Energy (PTEN - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Expedia has an Earnings ESP of +7.34% and sports a Zacks Rank #1. The company is scheduled to report its fourth-quarter 2022 results on Feb 9. Expedia’s earnings surpassed the Zacks Consensus Estimate thrice in each of the trailing four quarters and missed on one occasion, the average surprise being negative 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EXPE’s fourth-quarter earnings is pegged at $1.85 per share, indicating a 74.5% surge from the year-ago quarter’s $1.06 per share. The consensus mark for revenues stands at $2.68 billion, suggesting a year-over-year increase of 17.7%.
Lumentum has an Earnings ESP of +6.02% and currently carries a Zacks Rank #2. The company is slated to report its second-quarter fiscal 2023 results on Feb 9. Lumentum’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 5.8%.
The Zacks Consensus Estimate for LITE’s fourth-quarter earnings stands at $1.33 per share, implying a year-over-year decrease of 16.9%. LITE is estimated to report revenues of $506.1 million, which suggests a surge of 13.3% from the year-ago quarter.
PattersonUTI Energy has an Earnings ESP of +5.53% and flaunts a Zacks Rank #1 at present. The company is slated to report fourth-quarter 2022 results on Feb 8. PattersonUTI’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 169.2%.
The Zacks Consensus Estimate for PTEN’s quarterly earnings is pegged at 43 cents per share, suggesting a year-over-year increase of 213.2%. PTEN’s quarterly revenues are estimated to increase 62.8% year over year to $759.5 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Atlassian (TEAM - Free Report) is scheduled to report second-quarter fiscal 2023 results on Feb 2.
Atlassian projects fiscal second-quarter revenues between $835 million and $855 million ($845 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $842.5 million, suggesting growth of 22.4% from the year-ago reported figure.
For second-quarter earnings, the Zacks Consensus Estimate is pegged at 30 cents per share, suggesting a 40% decline from the 50 cents reported in the year-ago period.
Atlassian surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 19.3%.
Factors at Play
The rising adoption of TEAM’s cloud-based solutions and the massive digitalization trend in organizations, along with the growing hybrid working trend, are likely to have favored the company’s fiscal second-quarter performance. Growing demand for the company’s cloud products from the new and existing clients using on-premises products might have acted as a tailwind.
The increasing traction for core products like Jira Software and Confluence Cloud and the rising adoption of new products like Jira Service Management may have acted as key catalysts. An improvement in product quality and performance, multiple product launches and increased pricing are likely to have boosted the firm’s performance as well.
Robust growth in subscription revenues, aided by the solid uptake of the company’s subscription-based offerings, is likely to get reflected in the to-be-reported quarter’s results. Atlassian expects a non-GAAP gross margin of 83-84% and non-GAAP operating margin of around 13% in the second-quarter fiscal 2023.
However, increased investments in its systems and infrastructure, research & development and sales and marketing initiatives might have weighed on the bottom line in the first quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Atlassian this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (33 cents per share) and the Zacks Consensus Estimate (30 cents per share), is +8.91%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TEAM carries a Zacks Rank #3.
Other Stocks With Favorable Combination
Per our model, Expedia Group (EXPE - Free Report) , Lumentum (LITE - Free Report) and PattersonUTI Energy (PTEN - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Expedia has an Earnings ESP of +7.34% and sports a Zacks Rank #1. The company is scheduled to report its fourth-quarter 2022 results on Feb 9. Expedia’s earnings surpassed the Zacks Consensus Estimate thrice in each of the trailing four quarters and missed on one occasion, the average surprise being negative 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EXPE’s fourth-quarter earnings is pegged at $1.85 per share, indicating a 74.5% surge from the year-ago quarter’s $1.06 per share. The consensus mark for revenues stands at $2.68 billion, suggesting a year-over-year increase of 17.7%.
Lumentum has an Earnings ESP of +6.02% and currently carries a Zacks Rank #2. The company is slated to report its second-quarter fiscal 2023 results on Feb 9. Lumentum’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 5.8%.
The Zacks Consensus Estimate for LITE’s fourth-quarter earnings stands at $1.33 per share, implying a year-over-year decrease of 16.9%. LITE is estimated to report revenues of $506.1 million, which suggests a surge of 13.3% from the year-ago quarter.
PattersonUTI Energy has an Earnings ESP of +5.53% and flaunts a Zacks Rank #1 at present. The company is slated to report fourth-quarter 2022 results on Feb 8. PattersonUTI’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 169.2%.
The Zacks Consensus Estimate for PTEN’s quarterly earnings is pegged at 43 cents per share, suggesting a year-over-year increase of 213.2%. PTEN’s quarterly revenues are estimated to increase 62.8% year over year to $759.5 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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