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Five9 (FIVN) to Report Q2 Earnings: Is a Beat in Store?

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We expect Five9 Inc. (FIVN - Free Report) to beat expectations when it reports second-quarter 2017 results on Aug 3.

Last quarter, the company posted a positive earnings surprise of 40%. Notably, the stock outperformed the Zacks Consensus Estimate, over all the trailing four quarters, with an average positive surprise of 44.1%. Let's see how things are shaping up for this announcement.

Why a Likely Positive Surprise?

Our proven model shows that Five9 is likely to beat on earnings because it has the right combination of the two key components.

Zacks ESP: Five9 currently has an Earnings ESP of +10%. This is because the Most Accurate estimate is pegged at loss of 9 cents, while the Zacks Consensus Estimate comes at a loss of 10 cents. A favorable Earnings ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Five9 currently carries a Zacks Rank #2 (Buy). It should be noted that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings. Conversely, stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered going into an earnings announcement.

The combination of Five9’s Zacks Rank #2 and a positive ESP make us reasonably confident of a positive earnings beat.

Five9, Inc. Price and EPS Surprise

 

Five9, Inc. Price and EPS Surprise | Five9, Inc. Quote

What's Driving the Better-than-Expected Earnings?

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 customers’ 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 reflect in its to-be-reported quarter.

Moreover, the company’s consistent focus on expanding its product portfolio will aid the top-line performance.

Other Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:

Salesforce.com Inc. (CRM - Free Report) , expected to release earnings on Aug 30, currently has an Earnings ESP of +11.11% and a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.

CA Inc. (CA - Free Report) , scheduled to release earnings on Aug 2, currently has an Earnings ESP of +4.00% and a Zacks Rank #3.

Citrix Systems, Inc. (CTXS - Free Report) , slated to release earnings on Aug 2, currently has an Earnings ESP of +1.18% and a Zacks Rank #3.

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