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Is a Beat Likely for Atlassian (TEAM) This Earnings Season?
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Atlassian (TEAM - Free Report) is likely to beat expectations when it reports third-quarter fiscal 2022 results after market close on Apr 28. In the last reported quarter, the company delivered an earnings surprise of 31.6%.
Atlassian surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same on one occasion, the average surprise being 8.3%.
Atlassian projects fiscal third-quarter revenues between $690 million and $705 million ($697.5 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $697 million, suggesting growth of 2.5% from the year-ago reported figure.
The company estimates non-IFRS earnings between 29 cents and 31 cents per share for the fiscal third quarter. The Zacks Consensus Estimate is pegged at 32 cents per share, suggesting a decline of 33.3% from 48 cents reported in the year-ago period.
The rising adoption of TEAM’s cloud-based solutions and the massive digitalization of work in organizations, big or small, are likely to have benefited the fiscal third-quarter performance. The increasing demand for the company’s cloud products from the new and existing clients using on-premises products might have acted as a tailwind.
With more customers migrating to the cloud amid the pandemic-induced work-from-home and online learning wave, Atlassian has been witnessing strong demand for its premium and Enterprise edition of cloud offerings. This is likely to get reflected in the fiscal third-quarter results.
The fiscal third-quarter performance is likely to have gained from the rising demand for remote-working tools amid the pandemic-induced work-from-home trend.
Healthy demand for core products like Jira and Confluence and the rising adoption of new products like Jira Service Desk, Jira Ops and Bitbucket may have acted as key catalysts in the quarter to be reported. An improvement in product quality and performance and multiple product launches and increased pricing are likely to have boosted the firm’s fiscal third-quarter performance.
Robust growth in subscription revenues, aided by the solid uptake of the company’s cloud-service offerings, is likely to get reflected in the to-be-reported quarter’s results.
However, increased investments in its systems and infrastructure, research & development, sales and marketing initiatives might have weighed on the bottom line in the quarter under review.
What Our Model Says
Our proven model predicts an earnings beat for Atlassian this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Atlassian currently carries a Zacks Rank of 3 and has an Earnings ESP of +3.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Per our model, Apple (AAPL - Free Report) , Qualcomm (QCOM - Free Report) and Fortive (FTV - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
Apple is slated to report second-quarter fiscal 2022 results on Apr 28. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.54% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 20.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.44 per share, suggesting a year-over-year improvement of 2.9%. AAPL’s quarterly revenues are estimated to increase 5.4% year over year to $94.4 billion.
Qualcomm carries a Zacks Rank #3 and has an Earnings ESP of +0.15%. The company is scheduled to report second-quarter fiscal 2022 results on Apr 27. Qualcomm’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.2%.
The Zacks Consensus Estimate for QCOM’s second-quarter earnings is pegged at $2.91 per share, indicating a year-over-year decline of 53.2%. The consensus mark for revenues stands at $10.58 billion, suggesting a year-over-year increase of 33.3%.
Fortive currently carries a Zacks Rank #3 and has an Earnings ESP of +0.30%. The company is slated to report its first-quarter 2022 results on Apr 28. Fortive’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 4%.
The Zacks Consensus Estimate for Fortive’s first-quarter earnings stands at 68 cents per share, implying a year-over-year increase of 7.9%. FTV is estimated to report revenues of $1.35 billion, which suggests growth of 7.1% from the year-ago quarter.
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Is a Beat Likely for Atlassian (TEAM) This Earnings Season?
Atlassian (TEAM - Free Report) is likely to beat expectations when it reports third-quarter fiscal 2022 results after market close on Apr 28. In the last reported quarter, the company delivered an earnings surprise of 31.6%.
Atlassian surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same on one occasion, the average surprise being 8.3%.
Atlassian projects fiscal third-quarter revenues between $690 million and $705 million ($697.5 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $697 million, suggesting growth of 2.5% from the year-ago reported figure.
The company estimates non-IFRS earnings between 29 cents and 31 cents per share for the fiscal third quarter. The Zacks Consensus Estimate is pegged at 32 cents per share, suggesting a decline of 33.3% from 48 cents reported in the year-ago period.
Atlassian Corporation PLC Price and EPS Surprise
Atlassian Corporation PLC price-eps-surprise | Atlassian Corporation PLC Quote
Factors to Note Ahead of Q3 Results
The rising adoption of TEAM’s cloud-based solutions and the massive digitalization of work in organizations, big or small, are likely to have benefited the fiscal third-quarter performance. The increasing demand for the company’s cloud products from the new and existing clients using on-premises products might have acted as a tailwind.
With more customers migrating to the cloud amid the pandemic-induced work-from-home and online learning wave, Atlassian has been witnessing strong demand for its premium and Enterprise edition of cloud offerings. This is likely to get reflected in the fiscal third-quarter results.
The fiscal third-quarter performance is likely to have gained from the rising demand for remote-working tools amid the pandemic-induced work-from-home trend.
Healthy demand for core products like Jira and Confluence and the rising adoption of new products like Jira Service Desk, Jira Ops and Bitbucket may have acted as key catalysts in the quarter to be reported. An improvement in product quality and performance and multiple product launches and increased pricing are likely to have boosted the firm’s fiscal third-quarter performance.
Robust growth in subscription revenues, aided by the solid uptake of the company’s cloud-service offerings, is likely to get reflected in the to-be-reported quarter’s results.
However, increased investments in its systems and infrastructure, research & development, sales and marketing initiatives might have weighed on the bottom line in the quarter under review.
What Our Model Says
Our proven model predicts an earnings beat for Atlassian this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Atlassian currently carries a Zacks Rank of 3 and has an Earnings ESP of +3.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Per our model, Apple (AAPL - Free Report) , Qualcomm (QCOM - Free Report) and Fortive (FTV - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
Apple is slated to report second-quarter fiscal 2022 results on Apr 28. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.54% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 20.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.44 per share, suggesting a year-over-year improvement of 2.9%. AAPL’s quarterly revenues are estimated to increase 5.4% year over year to $94.4 billion.
Qualcomm carries a Zacks Rank #3 and has an Earnings ESP of +0.15%. The company is scheduled to report second-quarter fiscal 2022 results on Apr 27. Qualcomm’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.2%.
The Zacks Consensus Estimate for QCOM’s second-quarter earnings is pegged at $2.91 per share, indicating a year-over-year decline of 53.2%. The consensus mark for revenues stands at $10.58 billion, suggesting a year-over-year increase of 33.3%.
Fortive currently carries a Zacks Rank #3 and has an Earnings ESP of +0.30%. The company is slated to report its first-quarter 2022 results on Apr 28. Fortive’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 4%.
The Zacks Consensus Estimate for Fortive’s first-quarter earnings stands at 68 cents per share, implying a year-over-year increase of 7.9%. FTV is estimated to report revenues of $1.35 billion, which suggests growth of 7.1% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.