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Remark Holdings (MARK) to Report Q3 Earnings: What's in Store?

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Remark Holdings, Inc. (MARK - Free Report) is set to report third-quarter 2020 financial results on Nov 16.

In the last reported quarter, the company delivered an earnings surprise of 20%. Moreover, it surpassed the Zacks Consensus Estimate for revenues by 74%.

Let's take a closer look at the factors influencing Remark Holdings’ third-quarter results.

Factors Under Consideration

Remark Holdings has been witnessing rising demand for its artificial intelligence (AI) enabled thermal imaging and facial recognition technology in the wake of the coronavirus pandemic. While the thermal imaging technology helps clients scan for COVID-19 symptoms, the company’s facial-recognition technology checks for mask wearing and social distancing.

We expect these trends to have continued in the third quarter as well, boosting Remark Holdings’ top line. The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.82 million, which signifies more than a four-fold jump from the year-ago quarter’s total sales of $0.69 million.

Furthermore, the company’s continued focus on reducing sales & marketing, and general & administrative expenses is likely to have aided the bottom line during the quarter under review. The consensus mark is pegged at a loss per share of 4 cents, significantly narrower than the year-ago quarter’s loss of 11 cents per share.

What Our Model Says

Our proven model does not predict an earnings beat for Remark Holdings 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.

Remark Holdings currently carries a Zacks Rank of 3 (Hold) 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 carries a Zacks Rank of 2, 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.

Workday Inc. (WDAY - Free Report) has an Earnings ESP of +3.73% and currently holds a Zacks Rank of 3.

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