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Will Healthy Revenue Growth Aid Model N's (MODN) Q4 Earnings?
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Model N, Inc. (MODN - Free Report) is scheduled to release its fourth-quarter fiscal 2023 results on Nov 9, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 45.83%. It pulled off a trailing four-quarter earnings surprise of 21.26%, on average. It is expected to report a top-line expansion year over year, driven by healthy demand trends in the Professional Services and Subscription business.
Factors at Play
Model N is experiencing healthy traction in its high-tech and life science divisions, with major industry leaders such as AMD leveraging its revenue management solutions. Enterprises are also opting for Model N’s products to facilitate smooth mergers and acquisitions, driving overall revenue synergies and ensuring compliance. Management is placing a strong emphasis on innovation and improving product capabilities to ensure greater transparency and versatility. This allows it to provide revenue management solutions tailored to each stage of a customer’s growth.
The development of data and analytics solutions is expected to bolster the company's revenue growth. The embedded artificial intelligence feature integrated with stand-alone analytic applications is engineered to augment predictive decision-making and solve specific business problems with ease.
Additionally, the solution processes information from its extensive data pool that is common across various industries. This equips customers with insights regarding market share, competitor pricing and industry reports based on key performance indicators. The solution set enables enterprises to efficiently analyze the market, leading to improved decision-making in terms of product launch and commercialization. These developments are likely to have boosted the top line during the quarter.
Our estimate for Subscription revenues is pegged at $45.9 million, suggesting 7.1% year-over-year growth. Our revenue estimate for Professional Services is pegged at $16.2 million, indicating growth from $15.3 million reported in the prior-year quarter.
For the fourth quarter of fiscal 2023, the Zacks Consensus Estimate for revenues is pegged at $62 million, indicating growth from $58 million. The consensus estimate for adjusted earnings per share stands at 30 cents, suggesting growth from 20 cents reported a year ago.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Model N this time around. 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. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 30 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Keysight Technologies, Inc. (KEYS - Free Report) is +0.18% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 20.
The Earnings ESP for Applied Materials, Inc. (AMAT - Free Report) is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 16.
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Will Healthy Revenue Growth Aid Model N's (MODN) Q4 Earnings?
Model N, Inc. (MODN - Free Report) is scheduled to release its fourth-quarter fiscal 2023 results on Nov 9, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 45.83%. It pulled off a trailing four-quarter earnings surprise of 21.26%, on average. It is expected to report a top-line expansion year over year, driven by healthy demand trends in the Professional Services and Subscription business.
Factors at Play
Model N is experiencing healthy traction in its high-tech and life science divisions, with major industry leaders such as AMD leveraging its revenue management solutions. Enterprises are also opting for Model N’s products to facilitate smooth mergers and acquisitions, driving overall revenue synergies and ensuring compliance. Management is placing a strong emphasis on innovation and improving product capabilities to ensure greater transparency and versatility. This allows it to provide revenue management solutions tailored to each stage of a customer’s growth.
The development of data and analytics solutions is expected to bolster the company's revenue growth. The embedded artificial intelligence feature integrated with stand-alone analytic applications is engineered to augment predictive decision-making and solve specific business problems with ease.
Additionally, the solution processes information from its extensive data pool that is common across various industries. This equips customers with insights regarding market share, competitor pricing and industry reports based on key performance indicators. The solution set enables enterprises to efficiently analyze the market, leading to improved decision-making in terms of product launch and commercialization. These developments are likely to have boosted the top line during the quarter.
Our estimate for Subscription revenues is pegged at $45.9 million, suggesting 7.1% year-over-year growth. Our revenue estimate for Professional Services is pegged at $16.2 million, indicating growth from $15.3 million reported in the prior-year quarter.
For the fourth quarter of fiscal 2023, the Zacks Consensus Estimate for revenues is pegged at $62 million, indicating growth from $58 million. The consensus estimate for adjusted earnings per share stands at 30 cents, suggesting growth from 20 cents reported a year ago.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Model N this time around. 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. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 30 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Model N, Inc. Price and EPS Surprise
Model N, Inc. price-eps-surprise | Model N, Inc. Quote
Zacks Rank: Model N sports a Zacks Rank #1.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for TTEC Holdings, Inc. (TTEC - Free Report) is +4.07% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 8. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Keysight Technologies, Inc. (KEYS - Free Report) is +0.18% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 20.
The Earnings ESP for Applied Materials, Inc. (AMAT - Free Report) is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 16.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.