Domo ( DOMO Quick Quote DOMO - Free Report) is set to report fourth-quarter fiscal 2021 results on Mar 11. For the quarter, Domo expects revenues between $53.3 million and $54.3 million. Non-GAAP net loss is expected between 42 cents and 46 cents per share. The Zacks Consensus Estimate for fourth-quarter loss has been steady at 44 cents per share over the past 30 days. The company had reported a loss of 85 cents in the year-ago quarter. The consensus mark for revenues stands at $53.8 million, indicating an increase of 16.5% from the year-ago reported figure. Notably, Domo beat the Zacks Consensus Estimate in the past four quarters, delivering an earnings surprise of 21.4%, on average.
Let’s see how things have shaped up for this announcement.
Factors to Watch
Domo’s fourth-quarter results are expected to reflect resilient subscription-based business model amid the coronavirus pandemic. The top line is expected to have benefited from its new platform-based pricing model.
Markedly, subscriptions increased 24% year over year and accounted for 87.4% of the company’s third-quarter revenues. The momentum is expected to have continued in the to-be-reported quarter. Domo has also benefited from the ongoing digital transformation of businesses and work-from-home wave. Additionally, the company’s expanding service offerings, based on a solid partner base, is a key catalyst. Moreover, expanded partnership with the likes of Snowflake ( SNOW Quick Quote SNOW - Free Report) is another key catalyst. Markedly, during the to-be-reported quarter, Domo achieved Premier status in Snowflake’s Partner Connect Program. Further, Domo’s expanding clientele, particularly enterprise customers, are expected to have driven the top line in the to-be-reported quarter. Notably, at the end of the third quarter, 59% of customers were on multi-year contracts. However, the bottom line is expected to have been hurt by modest sequential increase in operating expenses particularly due to addition in sales headcount in the to-be-reported quarter. 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. Domo has an Earnings ESP of 0.00% and a Zacks Rank #3. 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 couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Micron ( MU Quick Quote MU - Free Report) has an Earnings ESP of +5.16% and currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. FedEx ( FDX Quick Quote FDX - Free Report) has an Earnings ESP of +2.72% and carries a Zacks Rank of 2, at present. These Stocks Are Poised to Soar Past the Pandemic
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