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Atlassian (TEAM) to Report Q4 Earnings: What's in Store?

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Atlassian (TEAM - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Jul 29.

Atlassian projects fiscal fourth-quarter revenues to lie between $513 million and $528 million (mid-point $520.5 million). The Zacks Consensus Estimate for revenues is pegged at $521.6 million, suggesting growth of 21.2% from the year-ago period.

The company estimates to report non-IFRS earnings of 17 cents per share for the fiscal fourth quarter. The Zacks Consensus Estimate is pegged at 18 cents per share, calling for a decline of 28% from the 25 cents reported in the year-ago period.

Notably, the company’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 30.3%.

Atlassian Corporation PLC Price and EPS Surprise

Atlassian Corporation PLC Price and EPS Surprise

Atlassian Corporation PLC price-eps-surprise | Atlassian Corporation PLC Quote

Let’s see how things have shaped up prior to the upcoming announcement.

Factors at Play

The rising adoption of Atlassian’s cloud-based solutions and massive digitalization of work in organizations, big or small, is likely to have supported its quarterly performance. Increasing demand for the company’s cloud products from new customers as well as the existing clients using on-premises products is expected to have been another tailwind.

Additionally, its fiscal fourth-quarter performance is likely to have benefited from the rising demand for remote-working tools amid the COVID-19 pandemic-induced work-from-home trend.

Furthermore, healthy demand for core products like Jira and Confluence, coupled with the rising uptake of new products like Jira Service Desk, Jira Ops and Bitbucket, is anticipated to have been a key growth driver during the period in discussion. Improvement in product quality and performance, multiple product launches and increased pricing are likely to have bolstered the firm’s quarterly revenues.

Robust growth in subscription revenues, aided by the solid uptake of the company’s cloud-service offerings, is expected to reflect on the to-be-reported results as a consistent key catalyst.

Nonetheless, increased investments in its systems and infrastructure, research & development, sales and marketing initiatives might have weighed on the bottom line during the quarter in discussion.

What Our Model Says

Our proven model does not predict an earnings beat for Atlassian this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Atlassian currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:

Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +9.82% and currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple Inc. (AAPL - Free Report) has an Earnings ESP of +3.40% and carries a Zacks Rank #3, at present.

Facebook (FB - Free Report) has an Earnings ESP of +7.52% and holds a Zacks Rank of 3, currently.

In-Depth Zacks Research for the Tickers Above

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Apple Inc. (AAPL) - free report >>

Avnet, Inc. (AVT) - free report >>

Facebook, Inc. (FB) - free report >>

Atlassian Corporation PLC (TEAM) - free report >>