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Sapiens (SPNS) to Report Q1 Earnings: What's in the Cards?

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Sapiens International Corporation N.V. (SPNS - Free Report) is set to release first-quarter 2021 results on May 4.

The Zacks Consensus Estimate for revenues in the first quarter currently stands at $81.5 million, indicating growth of 11.3% from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings stayed at 19 cents over the past 30 days, indicating an increase of 26.7% from the figure reported in the year-ago quarter.

Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 13.7%.

In the last-reported quarter, Sapiens reported earnings of 19 cents per share that beat the Zacks Consensus Estimate by a couple of cents. Revenues of $79.5 million also surpassed the consensus mark of $78 million.

Let’s see how things are shaping up for this announcement.

Factors to Watch

Sapiens is expected to have benefited from an expanding customer base in the to-be-reported quarter. Further, the company’s portfolio strength and offerings, driven by an expanding partner base, are expected to have boosted the top line in the first quarter.

Markedly, during the first quarter, Sapiens announced an extension of its partnership with Atos. EXHO Haelth, which provides digital payment processing for healthcare, workers' compensation, property and casualty, and other specialty insurers, also signed a partnership deal with Sapiens, focusing on carriers.

Moreover, the company’s expanding footprint in Europe is noteworthy. Sapiens has invested significantly in European markets through acquisitions like Calculo and sum.cumo.

Markedly, the fourth-quarter acquisition of TIA Technology expanded Sapiens’ footprint in the Nordics, South Africa and the Baltics. Additionally, the buyout strengthened the company’s P&C and Life & Pension offerings in the region.

These factors are expected to have driven Sapiens’ top-line growth 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.

Sapienshas 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 few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fair Isaac (FICO - Free Report) has an Earnings ESP of +15.94% and is #2 Ranked.

Waters Corporation (WAT - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #2.

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