We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Synchronoss (SNCR) Gears Up for Q3 Earnings: What to Expect?
Read MoreHide Full Article
Synchronoss Technologies (SNCR - Free Report) is scheduled to report third-quarter 2020 results on Nov 9.
The Zacks Consensus Estimate for quarterly revenues is pinned at $69.8 million, indicating a 33.7% increase from the year-ago quarter. The consensus mark for the bottom line is pegged at a loss per share of 28 cents, much narrower than the 62 cents reported in the year-ago quarter.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average surprise being 77.8%.
Let’s see how things have shaped up for the upcoming announcement.
Key Factors
Synchronoss’ third-quarter performance is likely to have benefited from the company’s existing relations with its large customers. The firm’s large deals with the likes of Verizon, Sprint, AT&T, British Telecom, Vodafone, Comcast, the three Japanese carriers, and others are likely to have helped it weather the pandemic-induced economic downturn.
Synchronoss Technologies, Inc. Price and Consensus
The company generates about 70% of its recurring revenues from the aforementioned relationships, which provide it a solid base of revenues even amid such uncertain times.
Additionally, its cost-saving initiatives are likely to have boosted Synchronoss’ profitability during the quarter under review. The company’s cost-cutting measures include executives’ pay cut, reduction in workforce and contractors, facilities rationalizations, renegotiation of contracts with vendors and suppliers, and merit increase and bonus deferrals.
Management expects these measures to deliver approximately $55 million in annualized operating expenses reductions. Of the total, Synchronoss projects $45 million to be realized during the current year.
Nonetheless, Synchronoss’ performance is expected to have been hurt by business disruptions caused by the COVID-19 pandemic during the September-end quarter. Retail store operators make up for significant contribution to the company’s revenues. However, as retail stores across the world remained closed during most of the July-September period, the company’s top line might have been adversely impacted.
What Our Model Says
Our proven model does not predict an earnings beat for Synchronoss this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Synchronoss currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.
Intuit Inc. (INTU - Free Report) has an Earnings ESP of +39.88% and currently holds a Zacks Rank of 3.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Bigstock
Synchronoss (SNCR) Gears Up for Q3 Earnings: What to Expect?
Synchronoss Technologies (SNCR - Free Report) is scheduled to report third-quarter 2020 results on Nov 9.
The Zacks Consensus Estimate for quarterly revenues is pinned at $69.8 million, indicating a 33.7% increase from the year-ago quarter. The consensus mark for the bottom line is pegged at a loss per share of 28 cents, much narrower than the 62 cents reported in the year-ago quarter.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average surprise being 77.8%.
Let’s see how things have shaped up for the upcoming announcement.
Key Factors
Synchronoss’ third-quarter performance is likely to have benefited from the company’s existing relations with its large customers. The firm’s large deals with the likes of Verizon, Sprint, AT&T, British Telecom, Vodafone, Comcast, the three Japanese carriers, and others are likely to have helped it weather the pandemic-induced economic downturn.
Synchronoss Technologies, Inc. Price and Consensus
Synchronoss Technologies, Inc. price-consensus-chart | Synchronoss Technologies, Inc. Quote
The company generates about 70% of its recurring revenues from the aforementioned relationships, which provide it a solid base of revenues even amid such uncertain times.
Additionally, its cost-saving initiatives are likely to have boosted Synchronoss’ profitability during the quarter under review. The company’s cost-cutting measures include executives’ pay cut, reduction in workforce and contractors, facilities rationalizations, renegotiation of contracts with vendors and suppliers, and merit increase and bonus deferrals.
Management expects these measures to deliver approximately $55 million in annualized operating expenses reductions. Of the total, Synchronoss projects $45 million to be realized during the current year.
Nonetheless, Synchronoss’ performance is expected to have been hurt by business disruptions caused by the COVID-19 pandemic during the September-end quarter. Retail store operators make up for significant contribution to the company’s revenues. However, as retail stores across the world remained closed during most of the July-September period, the company’s top line might have been adversely impacted.
What Our Model Says
Our proven model does not predict an earnings beat for Synchronoss this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Synchronoss currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Spectrum Brands Holdings Inc. (SPB - Free Report) has an Earnings ESP of +9.24% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.
Intuit Inc. (INTU - Free Report) has an Earnings ESP of +39.88% and currently holds a Zacks Rank of 3.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>