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eGain (EGAN) to Report Q1 Earnings: What's in the Cards?

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eGain Corporation (EGAN - Free Report) is expected to release first-quarter fiscal 2019 results on Nov 8.

Notably, the company beat the Zacks Consensus Estimate in three of the trailing four quarters recording average positive surprise of 95.84%.

In the last reported quarter, the company reported earnings of 1 cent per in line with the Zacks Consensus Estimate. Revenues were $16 million, up 6.7% from the year-ago quarter. Further, the figure surpassed the Zacks Consensus Estimate of $15 million.

What to Expect

The Zacks Consensus Estimate for earnings shows an in-line result, with an increase of 100% year over year for the to-be reported quarter. The consensus estimate for revenues is pegged at $15.7 million, up 7.8% year over year.

The company’s shares have returned 170.9% year over year, substantially outperforming industry’s rally of 4.3%.

 

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

Factors to Consider

Software-as-a-Service (SaaS) revenues are expected to improve in the first quarter like the last three quarters. This in turn will boost the company’s top-line in the period as well. SaaS revenues in the last reported quarter increased 37% year over year to $32.7 million. Robust software sales are anticipated to aid the company’s results.

eGain recently announced a new innovative program “AI in 30 Days”. The new application is supported by company’s robust techniques, including artificial intelligence and cloud-based solutions, to aid customers and organizations in digitizing services.

Contact centers and customer service organizations can bolster engagement of their business values by leveraging eGain's digital driven by robust cloud, Internet of Things (IoT), and big data and analytics techniques.

In this digital transformation era, governments are increasingly focusing on devising new sophisticated solutions by imbibing cloud computing techniques. Per Technavio data, considering the government sector, the global cloud computing market is anticipated to witness a CAGR of over 13% amid 2018 and 2022.

The aforementioned factors reinforce belief in the company’s new solution.

The company’s multiple deals in the recent past also raise optimism. Notably, its partnership with Cisco, Avaya and Amazon Connect are anticipated to boost results.

However, stiff competition in cloud-based and SaaS-based market remains a woe.

eGain Corporation Price and EPS Surprise

 

 

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

eGain has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks With Favorable Combination

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

Adobe Systems Incorporated (ADBE - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +6.52% and a Zacks Rank #2.

Activision Blizzard, Inc (ATVI - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #3.

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