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Fastly (FSLY) to Report Q4 Earnings: What's in the Cards?
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Fastly (FSLY - Free Report) is set to release fourth-quarter 2020 results on Feb 17.
For the quarter, the company expects revenues between $80 million and $84 million. The consensus mark for the top line is currently pegged at $82.4 million, implying 39.9% growth from the figure reported in the year-ago quarter.
Adjusted loss is projected between 8 cents and 12 cents per share. The Zacks Consensus Estimate is currently pegged at a loss of 10 cents per share, which remained steady over the past 30 days. The company had reported a loss of 9 cents per share in the year-ago quarter.
Markedly, Fastly’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average being 17.6%.
Let’s see how things shaped up prior to this announcement.
Fastly’s fourth-quarter performance is expected to have suffered due to lower usage by not only TikTok but also other customers. Notably, TikTok accounted for 10.8% of Fastly’s revenues for nine months ended Sep 30, 2020.
Markedly, in the third quarter of 2020 TikTok suffered from political uncertainty after President Donald Trump threatened to ban it citing national security concerns. The company expects traffic reduction to have continued in the fourth quarter of 2020.
Nevertheless, customer count increased to 2,047, up from 1,951 at the end of the third quarter. Moreover, total-enterprise customer count increased to 313.
Although lower usage may have hurt Fastly’s growth in the to-be-reported quarter, demand for edge computing solutions is expected to have remained robust.
During the fourth quarter, Fastly announced major enhancements to its Compute@Edge solution, adding new developer tooling and functionality. Compute@Edge’s enhanced tooling prepares developers for unprecedented levels of Internet traffic and heightened expectations around digital experiences, while keeping performance, efficiency, and security at the forefront.
As of the end of third-quarter 2020, Fastly operates in 55 markets, providing access to 106 Tb/sec of global network capacity.
Moreover, the company announced advancements to its comprehensive portfolio of live event and video-on-demand services in the to-be reported quarter.
Fastly’s enhanced Live Event Services and video-on-demand features including live event monitoring, real-time observability and capacity reservations are enabling developers to respond to a recent rise in live-streaming events influenced by the COVID-19 pandemic, in addition to preparing for long-term video streaming trends.
What Our Model Indicates
Per the Zacks model, 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. But that’s not the case here.
Fastly has an Earnings ESP of +6.49% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
CrowdStrike Holdings Inc. (CRWD - Free Report) has an Earnings ESP of +57.75% and carries a Zacks Rank of 2, currently.
Camping World Holdings Inc. (CWH - Free Report) has an Earnings ESP of +45.46% and is #2 Ranked.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Fastly (FSLY) to Report Q4 Earnings: What's in the Cards?
Fastly (FSLY - Free Report) is set to release fourth-quarter 2020 results on Feb 17.
For the quarter, the company expects revenues between $80 million and $84 million. The consensus mark for the top line is currently pegged at $82.4 million, implying 39.9% growth from the figure reported in the year-ago quarter.
Adjusted loss is projected between 8 cents and 12 cents per share. The Zacks Consensus Estimate is currently pegged at a loss of 10 cents per share, which remained steady over the past 30 days. The company had reported a loss of 9 cents per share in the year-ago quarter.
Markedly, Fastly’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average being 17.6%.
Let’s see how things shaped up prior to this announcement.
Fastly, Inc. Price and EPS Surprise
Fastly, Inc. price-eps-surprise | Fastly, Inc. Quote
Factors to Note
Fastly’s fourth-quarter performance is expected to have suffered due to lower usage by not only TikTok but also other customers. Notably, TikTok accounted for 10.8% of Fastly’s revenues for nine months ended Sep 30, 2020.
Markedly, in the third quarter of 2020 TikTok suffered from political uncertainty after President Donald Trump threatened to ban it citing national security concerns. The company expects traffic reduction to have continued in the fourth quarter of 2020.
Nevertheless, customer count increased to 2,047, up from 1,951 at the end of the third quarter. Moreover, total-enterprise customer count increased to 313.
Although lower usage may have hurt Fastly’s growth in the to-be-reported quarter, demand for edge computing solutions is expected to have remained robust.
During the fourth quarter, Fastly announced major enhancements to its Compute@Edge solution, adding new developer tooling and functionality. Compute@Edge’s enhanced tooling prepares developers for unprecedented levels of Internet traffic and heightened expectations around digital experiences, while keeping performance, efficiency, and security at the forefront.
As of the end of third-quarter 2020, Fastly operates in 55 markets, providing access to 106 Tb/sec of global network capacity.
Moreover, the company announced advancements to its comprehensive portfolio of live event and video-on-demand services in the to-be reported quarter.
Fastly’s enhanced Live Event Services and video-on-demand features including live event monitoring, real-time observability and capacity reservations are enabling developers to respond to a recent rise in live-streaming events influenced by the COVID-19 pandemic, in addition to preparing for long-term video streaming trends.
What Our Model Indicates
Per the Zacks model, 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. But that’s not the case here.
Fastly has an Earnings ESP of +6.49% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Workday, Inc. (WDAY - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CrowdStrike Holdings Inc. (CRWD - Free Report) has an Earnings ESP of +57.75% and carries a Zacks Rank of 2, currently.
Camping World Holdings Inc. (CWH - Free Report) has an Earnings ESP of +45.46% and is #2 Ranked.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>