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Factors to Note Ahead of Atlassian's (TEAM) Q4 Earnings
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Atlassian (TEAM - Free Report) is likely to beat expectations when it reports fourth-quarter fiscal 2022 results after market close on Aug 4.
Atlassian surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 3.6%.
Atlassian projects fiscal fourth-quarter revenues between $710 million and $725 million ($717.5 million at the mid-point). The Zacks Consensus Estimate for revenues is pegged at $717.8 million, suggesting growth of 28.3% from the year-ago reported figure.
The company estimates non-IFRS earnings of 24 cents per share for the fiscal fourth quarter. The Zacks Consensus Estimate is pegged at 26 cents per share, suggesting an 8.3% surge from 24 cents reported in the year-ago period.
The rising adoption of TEAM’s cloud-based solutions and the massive digitalization trend in organizations, big or small, are likely to have favored the fiscal fourth-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 ongoing work-from-anywhere and online learning wave, Atlassian has been witnessing strong demand for its premium and Enterprise edition cloud solutions. This is likely to get reflected in the fiscal fourth-quarter results.
Growing traction for core products like Jira Software and Confluence Cloud and the rising adoption of new products like Jira Service Management may have acted as key catalysts. An improvement in product quality and performance and multiple product launches, and increased pricing are likely to have boosted the firm’s performance as well.
Robust growth in subscription revenues, aided by the solid uptake of the company’s subscription-based 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 fourth quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Atlassian this time. 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.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (27 cents per share) and the Zacks Consensus Estimate (26 cents per share), is +1.92%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TEAM carries a Zacks Rank #3.
Other Stocks With Favorable Combination
Per our model, MRC Global (MRC - Free Report) , Grocery Outlet (GO - Free Report) and Alcon (ALC - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global is slated to report second-quarter 2022 results on Aug 8. The company has a Zacks Rank #1 and an Earnings ESP of +10.35% at present. MRC's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 140.8%. You can see the complete list of today's Zacks #1 Rank stocks here.
MRC’s Zacks Consensus Estimate for quarterly earnings is pegged at 29 cents per share, suggesting a whopping year-over-year surge of 262.5%. Its quarterly revenues are estimated to increase 23.5% year over year to $847.3 million.
Grocery Outlet, which has an Earnings ESP of +5.62%, sports a Zacks Rank #1. The company is scheduled to report its second-quarter 2022 results on Aug 9. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.8%.
The Zacks Consensus Estimate for GO’s second-quarter earnings stands at 24 cents per share, suggesting a year-over-year increase of 4.4%. GO anticipates revenues of $859.6 million, which suggests growth of 10.8% from the year-ago quarter.
Alcon has a Zacks Rank #2 and an Earnings ESP of +1.08%. The company is expected to report second-quarter 2022 results on Aug 16. ALC's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.4%.
In the second quarter, Alcon’s Zacks Consensus Estimate for earnings is pegged at 55 cents per share, indicating a 1.8% year-over-year decline. However, revenues are expected to grow 4.4% to $2.19 billion.
Image: Bigstock
Factors to Note Ahead of Atlassian's (TEAM) Q4 Earnings
Atlassian (TEAM - Free Report) is likely to beat expectations when it reports fourth-quarter fiscal 2022 results after market close on Aug 4.
Atlassian surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 3.6%.
Atlassian projects fiscal fourth-quarter revenues between $710 million and $725 million ($717.5 million at the mid-point). The Zacks Consensus Estimate for revenues is pegged at $717.8 million, suggesting growth of 28.3% from the year-ago reported figure.
The company estimates non-IFRS earnings of 24 cents per share for the fiscal fourth quarter. The Zacks Consensus Estimate is pegged at 26 cents per share, suggesting an 8.3% surge from 24 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
The rising adoption of TEAM’s cloud-based solutions and the massive digitalization trend in organizations, big or small, are likely to have favored the fiscal fourth-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 ongoing work-from-anywhere and online learning wave, Atlassian has been witnessing strong demand for its premium and Enterprise edition cloud solutions. This is likely to get reflected in the fiscal fourth-quarter results.
Growing traction for core products like Jira Software and Confluence Cloud and the rising adoption of new products like Jira Service Management may have acted as key catalysts. An improvement in product quality and performance and multiple product launches, and increased pricing are likely to have boosted the firm’s performance as well.
Robust growth in subscription revenues, aided by the solid uptake of the company’s subscription-based 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 fourth quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Atlassian this time. 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.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (27 cents per share) and the Zacks Consensus Estimate (26 cents per share), is +1.92%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TEAM carries a Zacks Rank #3.
Other Stocks With Favorable Combination
Per our model, MRC Global (MRC - Free Report) , Grocery Outlet (GO - Free Report) and Alcon (ALC - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global is slated to report second-quarter 2022 results on Aug 8. The company has a Zacks Rank #1 and an Earnings ESP of +10.35% at present. MRC's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 140.8%. You can see the complete list of today's Zacks #1 Rank stocks here.
MRC’s Zacks Consensus Estimate for quarterly earnings is pegged at 29 cents per share, suggesting a whopping year-over-year surge of 262.5%. Its quarterly revenues are estimated to increase 23.5% year over year to $847.3 million.
Grocery Outlet, which has an Earnings ESP of +5.62%, sports a Zacks Rank #1. The company is scheduled to report its second-quarter 2022 results on Aug 9. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.8%.
The Zacks Consensus Estimate for GO’s second-quarter earnings stands at 24 cents per share, suggesting a year-over-year increase of 4.4%. GO anticipates revenues of $859.6 million, which suggests growth of 10.8% from the year-ago quarter.
Alcon has a Zacks Rank #2 and an Earnings ESP of +1.08%. The company is expected to report second-quarter 2022 results on Aug 16. ALC's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.4%.
In the second quarter, Alcon’s Zacks Consensus Estimate for earnings is pegged at 55 cents per share, indicating a 1.8% year-over-year decline. However, revenues are expected to grow 4.4% to $2.19 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.