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eGain (EGAN) to Report Q4 Earnings: What's in the Cards?
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eGain Corporation (EGAN - Free Report) is set to release fourth-quarter fiscal 2019 results on Sep 3.
Notably, the company beat the Zacks Consensus Estimate in two of the trailing four quarters, the average positive surprise being 266.7%.
In the last reported quarter, it posted non-GAAP earnings of 6 cents compared with 2 cents in the year-ago quarter.
Revenues rose 8% year over year to $17 million and were in line with the Zacks Consensus Estimate.
The Zacks Consensus Estimate for earnings has stayed flat at 4 cents over the past 30 days. The consensus mark for revenues is pegged at $17.4 million, implying growth of 11.5% from the figure reported in the year-ago quarter.
Let’s see how things are shaping up for this announcement.
Factors to Watch
eGain benefits from continuing migration of legacy on-premise customers to cloud. SaaS revenues rose 31% year over year to $11.8 million in third-quarter fiscal 2019.
Additionally, the company’s focus to penetrate the mid-market is noteworthy. Moreover, eGain’s customer engagement solutions are witnessing an increase in adoption. The company’s virtual assistants (chatbots), messaging, social and AI solutions are likely to majorly drive new bookings in the fiscal fourth quarter.
Further, eGain’s strong partner base, which includes the likes of Cisco, Avaya and Amazon Connect, is a key catalyst in driving bookings. The company continues to win customers on a regular basis that bodes well for SaaS revenues.
However, higher expenses due to customer event in London and increased marketing spending are expected to hurt its profitability in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, a company, with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP, has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
eGain currently 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 a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Verint Systems (VRNT - Free Report) currently has an Earnings ESP of +3.49% and a Zacks Rank #3.
Oracle (ORCL - Free Report) presently has an Earnings ESP of +0.10% and a Zacks Rank #3.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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eGain (EGAN) to Report Q4 Earnings: What's in the Cards?
eGain Corporation (EGAN - Free Report) is set to release fourth-quarter fiscal 2019 results on Sep 3.
Notably, the company beat the Zacks Consensus Estimate in two of the trailing four quarters, the average positive surprise being 266.7%.
In the last reported quarter, it posted non-GAAP earnings of 6 cents compared with 2 cents in the year-ago quarter.
Revenues rose 8% year over year to $17 million and were in line with the Zacks Consensus Estimate.
The Zacks Consensus Estimate for earnings has stayed flat at 4 cents over the past 30 days. The consensus mark for revenues is pegged at $17.4 million, implying growth of 11.5% from the figure reported in the year-ago quarter.
eGain Corporation Price and EPS Surprise
eGain Corporation price-eps-surprise | eGain Corporation Quote
Let’s see how things are shaping up for this announcement.
Factors to Watch
eGain benefits from continuing migration of legacy on-premise customers to cloud. SaaS revenues rose 31% year over year to $11.8 million in third-quarter fiscal 2019.
Additionally, the company’s focus to penetrate the mid-market is noteworthy. Moreover, eGain’s customer engagement solutions are witnessing an increase in adoption. The company’s virtual assistants (chatbots), messaging, social and AI solutions are likely to majorly drive new bookings in the fiscal fourth quarter.
Further, eGain’s strong partner base, which includes the likes of Cisco, Avaya and Amazon Connect, is a key catalyst in driving bookings. The company continues to win customers on a regular basis that bodes well for SaaS revenues.
However, higher expenses due to customer event in London and increased marketing spending are expected to hurt its profitability in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, a company, with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP, has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
eGain currently 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 a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Smartsheet (SMAR - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Verint Systems (VRNT - Free Report) currently has an Earnings ESP of +3.49% and a Zacks Rank #3.
Oracle (ORCL - Free Report) presently has an Earnings ESP of +0.10% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>