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Coupa (COUP) to Report Q3 Earnings: What's in the Cards?

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Coupa Software Inc. (COUP - Free Report) is set to release third-quarter fiscal 2019 results on Dec 3. The company beat the Zacks Consensus Estimate in the trailing four quarters, recording average positive surprise of 103.6%.

Coupa reported second-quarter fiscal 2019 non-GAAP income of 5 cents per share com,[paring favorably with the Zacks Consensus Estimate of a loss of 30 cents.

Revenues surged 38% from the year-ago quarter to $61.7 million, which surpassed the Zacks Consensus Estimate of $57 million.

What to Expect

For third-quarter fiscal 2019, revenues are anticipated between $62 million and $63 million. The Zacks Consensus Estimate for revenues is pegged at $62.5 million.

Non-GAAP net loss is anticipated in the range of 1-4 cents per share. The Zacks Consensus Estimate for loss is pegged at 3 cents per share.

Notably, Coupa’s shares have returned 85.3% year to date, substantially outperforming the 0.1% rally of the industry.

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

Factors to Consider

Coupa is benefiting from expanding customer base on the back of growing adoption of spend management platform. This is also driving subscription services revenues and gross margin.

Notably, Coupa addedmany new customers namely Telenor, Leprino Foods, US Concrete, Wabash National Corporation, Hubert Burda Media, Benteler, to name a few.

Moreover, an expanding partner base is anticipated to drive the top line. The company also launched R20 that leverages Community Intelligence to reduce global supply chain risk and provides customers with new capabilities to optimize spending.

Coupa recently acquired assets of DCR Workforce, a SaaS application provider. The buyout is aimed at fortifying Coupa’s strategy of helping organizations to manage their business spend, within a widespread BSM platform.

The company also acquired Aquiire, a real-time supplier catalog search. The acquisition extends Coupa’s ability to deliver a comprehensive business-to-business (B2B) shopping know-how across real-time, cached and localized catalog search.

.All these factors are expected to positively impact the company’s financial results in to-be-reported quarter.

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.

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

Stocks With a 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:

Splunk Inc. (SPLK - Free Report) has an Earnings ESP of +10.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3.

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +3.09% and a Zacks Rank #3.

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