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GoDaddy (GDDY) to Report Q4 Earnings: What's in the Cards?

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GoDaddy Inc. (GDDY - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 10.

For the fourth quarter, the company expects revenues of $970 million, indicating year-over-year growth of 11%. The Zacks Consensus Estimate for revenues is pegged at $970.5 million, indicating an increase of 11.1% from the year-ago reported figure.

Further, the consensus mark for earnings is pegged at 41 cents per share, which indicates no change from the year-ago reported figure.

GoDaddy beat on earnings in two of the trailing four quarters and missed the same twice, with the negative average surprise being 0.2%.

GoDaddy Inc. Price and EPS Surprise

GoDaddy Inc. Price and EPS Surprise

GoDaddy Inc. price-eps-surprise | GoDaddy Inc. Quote

Factors to Consider

Strong renewals on primary registrations and higher subscriptions to Websites + Marketing are likely to have continued benefiting GoDaddy’s fourth-quarter performance.

The growing focus on product innovation and customer traction is expected to have remained a tailwind in the soon-to-be-reported quarter.

Strength in hosting and Managed WordPress solutions is expected to have aided the company in gaining momentum among designers and developers. This might have supported the quarterly performance.

The solid momentum of GDDY’s robust portfolio of services including GoDaddy Payments, e-commerce, Virtual Terminal, Online Pay Links and offline transactions might have benefited its performance in the quarter under review.

GoDaddy has been making go-to-market strategies to help merchants set up an omnichannel commerce venture seamlessly. This is likely to have continued aiding the company to gain momentum among merchants in the fourth quarter.

Yet, global supply chain conditions — which are impacting the company’s technology hardware — are likely to have remained a negative in the to-be-reported quarter.

Further, mounting expenses owing to growing investments in technology and development are expected to have affected the company’s profitability.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for GoDaddy this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Endava (DAVA - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.26% from the prior-year reported figure.

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2 at present.

Applied Materials is set to report first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for AMAT’s earnings is pegged at $1.85 per share, which suggests an increase of 33.1% from the prior-year reported figure.

Analog Devices (ADI - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2 at present.

Analog Devices is scheduled to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for ADI’s earnings is pegged at $1.79 per share, which suggests an increase of 24.31% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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