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Five9 (FIVN) Q2 Earnings Preview: What Awaits the Stock?
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Five9 Inc. (FIVN - Free Report) is set to report second-quarter 2016 results on Aug 3. Last quarter, the company posted a loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 11 cents. Moreover, the company has outperformed the Zacks Consensus Estimate in all of the four trailing quarters with an average positive surprise of 27.54%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Five9 offers a virtual contact center cloud platform that acts as a hub for interaction between clients and customers. This facilitates contact center operations focused on inbound or outbound customer interactions within a single unified architecture. The company offers software products such as workforce management, speech recognition, predictive dialer, and voice applications.
The cloud-based contact center solution industry has been witnessing growth over the past several quarters as organizations are looking for ways to minimize costs and improve customer support. We believe that Five9 has been capitalizing on this opportunity, which should be reflected in its to-be-reported quarter.
Furthermore, the company’s sustained focus on expanding its product portfolio will aid its top-line performance.
However, intensifying competition from small and large players like Cisco Systems (CSCO - Free Report) is likely to dent Five9’s second-quarter performance.
Our proven model does not conclusively show that Five9 is likely to beat the Zacks Consensus Estimate in the upcoming release. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for Five9 is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 11 cents.
Zacks Rank: Though Five9’s Zacks Rank #3 increases the predictive power of ESP, the company’s 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are a couple of stocks which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Qualys Inc. (QLYS - Free Report) , with an Earnings ESP of +12.50% and a Zacks Rank #3.
Paycom Software Inc. (PAYC - Free Report) , with an Earnings ESP of +7.69% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Five9 (FIVN) Q2 Earnings Preview: What Awaits the Stock?
Five9 Inc. (FIVN - Free Report) is set to report second-quarter 2016 results on Aug 3. Last quarter, the company posted a loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 11 cents. Moreover, the company has outperformed the Zacks Consensus Estimate in all of the four trailing quarters with an average positive surprise of 27.54%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Five9 offers a virtual contact center cloud platform that acts as a hub for interaction between clients and customers. This facilitates contact center operations focused on inbound or outbound customer interactions within a single unified architecture. The company offers software products such as workforce management, speech recognition, predictive dialer, and voice applications.
The cloud-based contact center solution industry has been witnessing growth over the past several quarters as organizations are looking for ways to minimize costs and improve customer support. We believe that Five9 has been capitalizing on this opportunity, which should be reflected in its to-be-reported quarter.
Furthermore, the company’s sustained focus on expanding its product portfolio will aid its top-line performance.
However, intensifying competition from small and large players like Cisco Systems (CSCO - Free Report) is likely to dent Five9’s second-quarter performance.
FIVE9 INC Price and EPS Surprise
FIVE9 INC Price and EPS Surprise | FIVE9 INC Quote
Earnings Whispers
Our proven model does not conclusively show that Five9 is likely to beat the Zacks Consensus Estimate in the upcoming release. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for Five9 is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 11 cents.
Zacks Rank: Though Five9’s Zacks Rank #3 increases the predictive power of ESP, the company’s 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are a couple of stocks which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Qualys Inc. (QLYS - Free Report) , with an Earnings ESP of +12.50% and a Zacks Rank #3.
Paycom Software Inc. (PAYC - Free Report) , with an Earnings ESP of +7.69% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>