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Nimble Storage (NMBL): What's in the Cards in Q2 Earnings?
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Nimble Storage, Inc. is set to report second-quarter fiscal 2017 results on Aug 23. Last quarter, the company delivered a positive earnings surprise of 3.77%. However, the company has delivered an average negative earnings surprise of 3.98% in the last four quarters.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Nimble Storage is positioning itself to benefit from the ongoing shift to flash-centric architectures from the conventional disk-centric architectures with its Adaptive Flash platform. Meanwhile, it is acquiring large enterprise customers and equally concentrating on growing its mid-size customer base.In the first quarter, its customer base grew 48% while AFA bookings constituted 12% of total bookings in the quarter.
The company launched AF-series All Flash Arrays storage equipment that relies solely on flash memory chips. Analysts view this as a big positive for the company that will allow it to gain traction in the all flash segment. However, they remain wary of the stiff competition from existing players like EMC and Pure Storage, which might weigh on Nimble’s margins.
For the second quarter of fiscal 2017, the company expects revenues in a range of $93 million to $96 million. Non GAAP operating loss is expected to be $16 million to $18 million. Non-GAAP loss per share is projected in the range of 19 cents to 21 cents.
Our proven model does not conclusively show that Nimble is likely to beat estimates this quarter. 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. That is not the case here, as you will see below.
Zacks ESP: Nimble’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 49 cents.
Zacks Rank: Nimble’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter
GameStop Corp. (GME - Free Report) with an Earnings ESP of + 3.70% and a Zacks Rank #3.
Best Buy Co., Inc. (BBY - Free Report) , with an Earnings ESP of + 4.76% and a Zacks Rank #3.
Dollar Tree, Inc. (DLTR - Free Report) with an Earnings ESP of + 4.11% and a Zacks Rank #2.
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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Nimble Storage (NMBL): What's in the Cards in Q2 Earnings?
Nimble Storage, Inc. is set to report second-quarter fiscal 2017 results on Aug 23. Last quarter, the company delivered a positive earnings surprise of 3.77%. However, the company has delivered an average negative earnings surprise of 3.98% in the last four quarters.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Nimble Storage is positioning itself to benefit from the ongoing shift to flash-centric architectures from the conventional disk-centric architectures with its Adaptive Flash platform. Meanwhile, it is acquiring large enterprise customers and equally concentrating on growing its mid-size customer base.In the first quarter, its customer base grew 48% while AFA bookings constituted 12% of total bookings in the quarter.
The company launched AF-series All Flash Arrays storage equipment that relies solely on flash memory chips. Analysts view this as a big positive for the company that will allow it to gain traction in the all flash segment. However, they remain wary of the stiff competition from existing players like EMC and Pure Storage, which might weigh on Nimble’s margins.
For the second quarter of fiscal 2017, the company expects revenues in a range of $93 million to $96 million. Non GAAP operating loss is expected to be $16 million to $18 million. Non-GAAP loss per share is projected in the range of 19 cents to 21 cents.
Earnings Whispers
NIMBLE STORAGE Price and EPS Surprise
NIMBLE STORAGE Price and EPS Surprise | NIMBLE STORAGE Quote
Our proven model does not conclusively show that Nimble is likely to beat estimates this quarter. 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. That is not the case here, as you will see below.
Zacks ESP: Nimble’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 49 cents.
Zacks Rank: Nimble’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter
GameStop Corp. (GME - Free Report) with an Earnings ESP of + 3.70% and a Zacks Rank #3.
Best Buy Co., Inc. (BBY - Free Report) , with an Earnings ESP of + 4.76% and a Zacks Rank #3.
Dollar Tree, Inc. (DLTR - Free Report) with an Earnings ESP of + 4.11% and a Zacks Rank #2.
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 >>