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The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $1.85 billion, up 22.66% from the figure reported in the year-ago quarter.
The consensus mark for third-quarter earnings has been steady at $1.85 per share over the past 30 days, indicating growth of 19.35% from the figure reported in the year-ago quarter.
ServiceNow’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 5.47%.
Let’s see how things are shaping up for ServiceNow prior to this announcement.
Factors at Play
ServiceNow’s third-quarter results are expected to have benefited from the strong adoption of its workflow solutions by enterprises amid the pandemic-induced accelerated digital transformation trend.
For third-quarter 2022, subscription revenues are projected between $1.750 billion and $1.755 billion, suggesting an improvement of 27.5% year over year on a non-GAAP basis.
Top-line growth is likely to be driven by the company’s robust product portfolio and strong demand for the Now Platform in the to-be-reported quarter.
ServiceNow’s expanding global presence, solid partner base and strategic buyouts are expected to have bolstered top-line growth in the third quarter of 2022. However, unfavorable forex is expected to hurt top-line growth in the to-be-reported quarter.
Key Quarter Developments
During the to-be-reported quarter, ServiceNow announced the Now Platform Tokyo release, which is designed to help organizations navigate complex business challenges amid an uncertain macro environment. The release features tools related to Enterprise Asset Management, Supplier Lifecycle Management and ESG Management. It also offers tools like Manager Hub, Admin Center and Issue Auto Resolution for Human Resources, which help enterprises in developing talent and retention.
Moreover, the Now Platform Tokyo release includes the ServiceNow Vault as well as new AI-powered tools like Task Intelligence for Customer Service Management, Automation Center, DevOps Config, Operational Resilience Management and ITSM Pro+. These solutions help organizations operate more efficiently and power more resilient business models.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
ServiceNow has an Earnings ESP of -0.36% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
ServiceNow (NOW) to Report Q3 Earnings: What's in the Cards?
ServiceNow (NOW - Free Report) is scheduled to release its third-quarter 2022 results on Oct 26.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $1.85 billion, up 22.66% from the figure reported in the year-ago quarter.
The consensus mark for third-quarter earnings has been steady at $1.85 per share over the past 30 days, indicating growth of 19.35% from the figure reported in the year-ago quarter.
ServiceNow’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 5.47%.
ServiceNow, Inc. Price and EPS Surprise
ServiceNow, Inc. price-eps-surprise | ServiceNow, Inc. Quote
Let’s see how things are shaping up for ServiceNow prior to this announcement.
Factors at Play
ServiceNow’s third-quarter results are expected to have benefited from the strong adoption of its workflow solutions by enterprises amid the pandemic-induced accelerated digital transformation trend.
For third-quarter 2022, subscription revenues are projected between $1.750 billion and $1.755 billion, suggesting an improvement of 27.5% year over year on a non-GAAP basis.
Top-line growth is likely to be driven by the company’s robust product portfolio and strong demand for the Now Platform in the to-be-reported quarter.
ServiceNow’s expanding global presence, solid partner base and strategic buyouts are expected to have bolstered top-line growth in the third quarter of 2022. However, unfavorable forex is expected to hurt top-line growth in the to-be-reported quarter.
Key Quarter Developments
During the to-be-reported quarter, ServiceNow announced the Now Platform Tokyo release, which is designed to help organizations navigate complex business challenges amid an uncertain macro environment. The release features tools related to Enterprise Asset Management, Supplier Lifecycle Management and ESG Management. It also offers tools like Manager Hub, Admin Center and Issue Auto Resolution for Human Resources, which help enterprises in developing talent and retention.
Moreover, the Now Platform Tokyo release includes the ServiceNow Vault as well as new AI-powered tools like Task Intelligence for Customer Service Management, Automation Center, DevOps Config, Operational Resilience Management and ITSM Pro+. These solutions help organizations operate more efficiently and power more resilient business models.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
ServiceNow has an Earnings ESP of -0.36% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Perion Network (PERI - Free Report) has an Earnings ESP of +10.58% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Perion shares are down 3.1% year to date. PERI is set to report its third-quarter 2022 results on Nov 9.
ZoomInfo (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2.
ZoomInfo shares have declined 30% on a year-to-date basis. ZI is set to report its third-quarter 2022 results on Nov 1.
Apple (AAPL - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank #3.
Apple shares are down 19.2% year to date. AAPL is set to report its fourth-quarter fiscal 2022 results on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.