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Upland Software (UPLD) Stock Jumps 8%: Will It Continue to Soar?

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Upland Software (UPLD - Free Report) shares rallied 8% in the last trading session to close at $44.20. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.8% loss over the past four weeks.

The increase in share price can be attributed to the company’s better-than-expected first quarter 2021 results.

Upland Software reported first quarter non-GAAP earnings of 60 cents per share, which beat the Zacks Consensus Estimate by 46.34%. Revenues of $73.97 million also beat the Zacks Consensus Estimate by 1.1% and increased 9% on a year-over-year basis.

The top line benefited from an expanding customer base, driven by organic growth in Customer Experience Management (CXM) solution and addition of robust products through acquisitions. Notably, in first-quarter 2021, Upland signed 118 new customers and expanded relationships with 283 existing customers.

The company concluded acquisition of Second Street, an audience development platform, aimed at providing Upland's CXM suite customers with robust contest and interactive content tools that offer deeper consumer engagement.

Upland also closed the buyout of BlueVenn, a customer data platform, in a bid to provide a single view of the customer for its CXM suite to drive richer engagement across SMS, email, mobile application, and online portals.

Price and Consensus

Price Consensus Chart for UPLD

This maker of cloud-based enterprise work-management software is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -30%. Revenues are expected to be $74.43 million, up 4.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Upland Software, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on UPLD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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