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Asure Software (ASUR) to Report Q2 Earnings: What's in Store?

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Asure Software (ASUR - Free Report) is set to release second-quarter 2019 results on Aug 8.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 29.5%.

In the first quarter, earnings of 22 cents per share beat the Zacks Consensus Estimate by a dime and jumped 69.2% year over year.

Revenues grew 39% year over year to $26.8 million and beat the consensus mark. Notably, recurring revenues accounted for 88% for total revenues.

 

Asure Software Inc Price and EPS Surprise

Asure Software Inc Price and EPS Surprise

Asure Software Inc price-eps-surprise | Asure Software Inc Quote

 

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

Factors to Consider

Asure Software’s second-quarter results are expected to benefit from strong momentum in recurring revenues, expanding clientele, and increasing upsell and cross-sell opportunities.

Moreover, the company’s SmartView workplace occupancy sensor system accurately captures environmental indicators around the office building, including CO2 level, lighting, heating, air conditioning and more.

The system has gained significant adoption within a short span of time. In the last reported quarter, Asure Software won a multiyear deal from a leading content delivery network company, primarily owing to the SmartView sensor system.

Asure Software also won a Silver Edison Award in the Energy and Sustainability category for Smart Climate Control due to the SmartView workplace occupancy sensor system in the to-be-reported quarter.

However, seasonality (the first quarter being the strongest due to onetime W-2 and ACA processing) is anticipated to hurt the Human Capital Management business’ top line.

The Zacks Consensus Estimate for revenues is currently pegged at $24.6 million, indicating 13.2% growth from the figure reported in the year-ago quarter.

Moreover, the Zacks Consensus Estimate for earnings stands at 7 cents, unchanged over the past 30 days and indicates a decline of 50% from the figure reported in the year-ago quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Asure Software has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With Favorable Combination

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

CACI International (CACI - Free Report) has an Earnings ESP of +4.02% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank #2.

GTT Communications has an Earnings ESP of +144.44% and a Zacks Rank #3.

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