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Tableau Software (DATA) Q2 Earnings: What's in the Cards?

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Tableau Software, Inc. (DATA - Free Report) is slated to release second-quarter 2017 results on Aug 2 after the closing bell. Last quarter, the company posted a negative earnings surprise of 31.37%. Moreover, it has reported negative earnings surprises in three of the trailing four quarters, resulting in an average negative earnings surprise of 22.23%.

Furthermore, the company posted disappointing results in the last reported quarter, with both earnings and revenues lagging expectations. Despite a 16% jump year over year, revenues of $199.9 million missed the Zacks Consensus Estimate of $ 201 million.

For second-quarter 2017, the company expects revenues to be in a range of $205–$215 million, representing 6% year-over-year growth (at midpoint of this range). Non-GAAP operating loss is projected to be in the $2–$10 million range and non-GAAP loss per diluted share is anticipated to be in the range of 2–9 cents per share.

Tableau Software, Inc. Price and EPS Surprise


Tableau Software, Inc. Price and EPS Surprise | Tableau Software, Inc. Quote

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

Factors to Consider

We believe that rising demand for business analytics tools is expected to benefit Tableau Software. Further, the company has been seeing strength in its offerings like the hybrid data architecture platform.

We note that the company’s shares have increased 55.3% on a year-to-date basis, outperforming the industry’s gain of 18.3%.

Recently, Tableau Software has undertaken a number of initiatives to boost sales productivity and align marketing efforts to drive growth. During the last reported quarter, the company introduced new subscription pricing for all of its products, including Tableau Desktop, Tableau Server and Tableau Online. It claims that this new pricing model reduces initial investment costs, allowing customers to more easily deploy its software at scale.

Moreover last month, it released the latest 10.3 version of its flagship software, which includes enhanced features such as data driven alerting, smart recommendation engine, and expands data connections.

Earnings Whispers

Our proven model does not conclusively show that Tableau Software is likely to beat earnings 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. This is not the case here as you will see below:

Zacks ESP: Tableau Software currently 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 49 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Tableau Software’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings beat.

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

Stocks to Consider

Here are some stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:

Kemet Corp. (KEM - Free Report) with an Earnings ESP of +11.11% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank Stocks here.

Vishay Intertechnology, Inc. (VSH - Free Report) with an Earnings ESP of +6.06% and a Zacks Rank #1.

CGI Group, Inc. (GIB - Free Report) with an Earnings ESP of +4.23% and a Zacks Rank #2.

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