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Anaplan (PLAN) to Report Q2 Earnings: What's in the Cards?

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Anaplan is set to report second-quarter fiscal 2020 results on Aug 27.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 20.5%.

In the last reported quarter, Anaplan’s non-GAAP loss was 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents. Also, revenues of $75.8 million beat the consensus mark of $70 million.

For the second quarter, Anaplan expects revenues between $77.5 million and $78.5 million.

The Zacks Consensus Estimate for revenues is pegged at $78.4 million. Moreover, the consensus mark for earnings is pegged at a loss of 16 cents, unchanged over the past 30 days.
 

Anaplan, Inc. Price and EPS Surprise

Anaplan, Inc. Price and EPS Surprise

Anaplan, Inc. price-eps-surprise | Anaplan, Inc. Quote

 

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

Factors Likely to Influence Q2 Results

Anaplan’s expanding user base is a key catalyst. At the end of the first quarter, the company was serving 279 customers with more than $250K in annual recurring revenues, reflecting an impressive year-over-year growth of 43%.

Solid demand for the company’s Connected Planning is expected to boost the dollar-based network expansion rate, which was 123% in the last reported quarter. Moreover, expanding use cases in related or adjacent business areas are anticipated to boost demand for Anaplan’s solutions, thereby driving the top line.

Moreover, the broadening partner ecosystem that now includes Bain, VCG, McKinsey, A.T. Kearney and Oliver Wyman strengthens Anaplan’s brand image and in turn drives customer wins.

During the second quarter, the company inked 41 new deals with Deloitte, Anaplan’s Global Partner of 2019. Deloitte now has more than 650 consultants engaged in delivering Anaplan solutions to customers and plans to double this number by 2021.

However, increased costs related to the annual user conference held in June are expected to hurt second-quarter profitability.

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. Meanwhile, the Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.

Anaplan has a Zacks Rank #3 but 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 a Favorable Combination

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

Verint Systems (VRNT - Free Report) has an Earnings ESP of +3.49% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Smartsheet (SMAR - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #3.

lululemon athletica (LULU - Free Report) has an Earnings ESP of +2.74% and a Zacks Rank #3.

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