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Doximity (DOCS) to Report Q4 Earnings: What's in the Offing?

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Doximity, Inc. (DOCS - Free Report) is scheduled to report fourth-quarter 2022 results on May 17, after the closing bell.

In the last-reported quarter, the company’s earnings of 29 cents per share surpassed the Zacks Consensus Estimate by 123.1%. Over the trailing three quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 83.5%, on average.                   

Let’s see how things have shaped up for Doximity prior to this announcement:

Factors at Play

Per the fiscal third-quarter 2022 earnings release, the ongoing shift to digital among Doximity’s clients led to a strong performance, which is likely to have continued in the fiscal fourth quarter.

Per management, the company’s existing clients generated a record surge in net revenue retention rate (for the trailing 12 months) in the fiscal third quarter of 2022. Further, Doximity has been witnessing strength in its telehealth platform, which has been recording robust adoption by clients over the past few months. These momentums are likely to have sustained in the to-be-reported quarter, thereby driving up revenues.

Doximity, Inc. Price and EPS Surprise

Doximity, Inc. Price and EPS Surprise

Doximity, Inc. price-eps-surprise | Doximity, Inc. Quote

Over the past few months, Doximity has been registering a sizeable budget shift to digital and real-time. This has been leading to its clients placing increased volume of orders. This trend is likely to have continued in the fiscal fourth quarter as well on the back of Doximity capturing a larger portion of this incremental budget as a result of strong ROI (return on investment) delivered by its platform, thereby significantly contributing to the overall top-line growth.

In February, Doximity completed the Amion buyout, which is expected to expand its physician cloud platform. This is also likely to have driven its performance in the to-be-reported quarter.

The Estimate Picture

For fourth-quarter fiscal 2022, the Zacks Consensus Estimate for total revenues is currently pegged at $89.5 million.

The consensus estimate for earnings per share (“EPS”) is pegged at 14 cents.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see:

Earnings ESP: Doximity has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. (OMCL - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Masimo Corporation (MASI - Free Report) .

Omnicell, flaunting a Zacks Rank #1, reported first-quarter 2022 adjusted EPS of 83 cents, which beat the Zacks Consensus Estimate by 16.9%. Revenues of $318.8 million outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Omnicell has an estimated long-term growth rate of 16%. OMCL’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 13.4%.

AMN Healthcare, sporting a Zacks Rank #1, reported first-quarter 2022 adjusted EPS of $3.49, which beat the Zacks Consensus Estimate by 7.4%. Revenues of $1.55 billion outpaced the consensus mark by 3.7%.

AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 15.6%.

Masimo reported first-quarter 2022 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 1.1%. Revenues of $304.2 million outpaced the Zacks Consensus Estimate by 3.6%. It currently carries a Zacks Rank #2.

Masimo has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average surprise being 4.4%.

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