We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.93 billion, suggesting a 19.82% rise from the figure reported in the year-ago quarter.
The consensus mark for fourth-quarter earnings has been unchanged at $2 per share over the past 30 days, indicating growth of 36.99% from the figure reported in the year-ago quarter.
ServiceNow’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 4.08%.
Let’s see how things are shaping up for ServiceNow prior to this announcement.
Factors at Play
ServiceNow’s fourth-quarter results are expected to benefit from the strong adoption of its workflow solutions by enterprises amid the pandemic-induced accelerated digital transformation trend. The company is expected to have benefited from the availability of ServiceNow Tokyo, which was launched in late September.
For fourth-quarter 2022, subscription revenues are projected between $1.834 billion and $1.839 billion, suggesting a year-over-year improvement of 20-21% on a GAAP basis.
Top-line growth is likely to have been 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 its top-line growth in the fourth quarter of 2022. However, unfavorable forex is expected to have hurt its top-line growth in the to-be-reported quarter.
Key Quarterly Developments
In the to-be-reported quarter, ServiceNow announced three solutions — Automated service suggestions, Service Request Playbook and Workplace Scenario Planning — that will help in accelerating the automation of complex, including offline processes for enterprises and government agencies.
Moreover, ServiceNow announced that it won a single award, Blanket Purchase Agreement, with the U.S. Department of Health and Human Services, which is part of the U.S. General Services Administration. The agreement is in partnership with Carahsoft Technology and has an estimated value of $250 million for a five-year performance period through 2027.
Further, ServiceNow announced that it signed an agreement to acquire the observability and log management innovator, Era Software.
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 0.00% 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: Shutterstock
ServiceNow (NOW) to Report Q4 Earnings: What's in the Cards?
ServiceNow (NOW - Free Report) is scheduled to release fourth-quarter 2022 results on Jan 25, 2023.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.93 billion, suggesting a 19.82% rise from the figure reported in the year-ago quarter.
The consensus mark for fourth-quarter earnings has been unchanged at $2 per share over the past 30 days, indicating growth of 36.99% from the figure reported in the year-ago quarter.
ServiceNow’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 4.08%.
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 fourth-quarter results are expected to benefit from the strong adoption of its workflow solutions by enterprises amid the pandemic-induced accelerated digital transformation trend. The company is expected to have benefited from the availability of ServiceNow Tokyo, which was launched in late September.
For fourth-quarter 2022, subscription revenues are projected between $1.834 billion and $1.839 billion, suggesting a year-over-year improvement of 20-21% on a GAAP basis.
Top-line growth is likely to have been 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 its top-line growth in the fourth quarter of 2022. However, unfavorable forex is expected to have hurt its top-line growth in the to-be-reported quarter.
Key Quarterly Developments
In the to-be-reported quarter, ServiceNow announced three solutions — Automated service suggestions, Service Request Playbook and Workplace Scenario Planning — that will help in accelerating the automation of complex, including offline processes for enterprises and government agencies.
Moreover, ServiceNow announced that it won a single award, Blanket Purchase Agreement, with the U.S. Department of Health and Human Services, which is part of the U.S. General Services Administration. The agreement is in partnership with Carahsoft Technology and has an estimated value of $250 million for a five-year performance period through 2027.
Further, ServiceNow announced that it signed an agreement to acquire the observability and log management innovator, Era Software.
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 0.00% 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:
International Business Machines (IBM - Free Report) has an Earnings ESP of +1.90% and has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
IBM shares have moved up 8.8% in the past year. IBM is set to report fourth-quarter 2022 results on Jan 25, 2023.
MSCI (MSCI - Free Report) currently has an Earnings ESP of +0.43% and a Zacks Rank #2.
MSCI shares have declined 1% in the past year. MSCI is set to report fourth-quarter 2022 results on Jan 31, 2023.
SAP (SAP - Free Report) has an Earnings ESP of +3.09% and a Zacks Rank #2 at present.
SAP shares have moved down 14.8% in the past year. SAP is set to report its fourth-quarter 2022 results on Jan 26, 2023.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.