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GoDaddy (GDDY) to Report Q4 Earnings: What's in the Cards?

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GoDaddy Inc. (GDDY - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 11.

For fourth-quarter 2020, the Zacks Consensus Estimate for sales is currently pegged at $865.2 million, indicating an improvement of 10.9% from the prior-year reported figure.

Further, the Zacks Consensus Estimate for earnings is pegged at 33 cents per share, implying a decrease of 2.9% from the year-ago reported figure.

The company missed the Zacks Consensus Estimate once in the trailing four quarters. It has a trailing four-quarter earnings surprise of 14.6%, on average.

GoDaddy Inc. Price and EPS Surprise

GoDaddy Inc. Price and EPS Surprise

GoDaddy Inc. price-eps-surprise | GoDaddy Inc. Quote

Factors to Note

All its segments — Domain, Hosting and Presence, and Business Applications — are expected to have performed well in the fourth quarter driven by increasing investments in the products and technology platform, as well as strong customer growth. The company has been expanding internationally by investing in technology, marketing programs and customer service teams. Growing international expansion and the shift toward dynamic online presence for small businesses are likely to have played an important role in the to-be-reported quarter.

The Zacks Consensus Estimate for the to-be-reported quarter’s Business Applications revenues is pegged at $160 million, indicating 18.5% year-over-year growth.

The consensus estimate for fourth-quarter Domain revenues is pegged at $395 million, suggesting a 12.2% year-over-year increase.

The consensus mark for fourth-quarter Hosting and Presence revenues is pegged at $310 million, implying a 5.8% year-over-year improvement. The company made efforts to offer advanced but simplified solutions in a bid to expand small business clientele, thereby boosting Hosting and Presence revenues.

The Zacks Consensus Estimate for fourth-quarter total bookings is pegged at $929 million, pointing to 11.4% year-over-year jump.

Increasing competition in domain, hosting and presence markets from companies like Endurance, Amazon and Google might impact its results for the to-be-reported quarter.

What Our Model Says

Our proven model predicts an earnings beat for GoDaddy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

GoDaddy has an Earnings ESP of +0.38% and a Zacks Rank #3, at present.

Other Stocks to Consider

Here are some other companies from the same space that also have the right combination of elements to post an earnings beat for the to-be-reported quarter:

Rocket Companies, Inc. (RKT - Free Report) has an Earnings ESP of +3.12% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Trimble Inc. (TRMB - Free Report) has an Earnings ESP of +8.83% and a Zacks Rank #3.

Lattice Semiconductor Corporation (LSCC - Free Report) has an Earnings ESP of +1.19% and holds a Zacks Rank of 3.

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