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What's in Store for Tableau Software (DATA) in Q4 Earnings?

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Tableau Software, Inc. is set to release fourth-quarter 2015 results on Feb 4. Last quarter, the company delivered a negative earnings surprise of 46.15%. Overall, the company has delivered positive earnings surprises in three of the last four quarters, with an average beat of 314.60%.

Let’s see how things are shaping up for this announcement.

Factors to Consider

Headquartered in Seattle, WA, Tableau Software engages in providing analytics and data visualization software. The company offers Tableau Desktop, Tableau Server and Tableau Public. It also provides related maintenance & support as well as professional and training services. Tableau’s customers total 35K and are spread across 150 countries.

Tableau currently targets growth in the international market, as is evident from the fact that a substantial part of its revenues is generated from business outside the U.S. and Canada. Last month, the company opened a data center in Dublin, Ireland, its first in the European region.  In Aug 2015, the company had launched its operations in China which can be a key growth driver.

Tableau Software partnered with companies like PostUp, Deloitte and NetSuite for providing analytics solutions.

For the fourth quarter, the company expects revenues to be around of $195 million to $200 million. 

Earnings Whispers

Our proven model does not conclusively show that Tableau Software is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: Tableau Software has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 9 cents.

Zacks Rank: Though Tableau’s Zacks Rank #3 (Hold) increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.

We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies that you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter:

MaxLinear, Inc. (MXL - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #1 (Strong Buy).

SolarWinds, Inc. (SWI - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #1.

Fidelity National Information Services, Inc. (FIS - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #3.

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