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Coupa Software (COUP) to Post Q3 Earnings: What's in Store?

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Coupa Software Inc. (COUP - Free Report) is set to report third-quarter fiscal 2020 results on Dec 2, after market close.

For the fiscal third quarter, the company expects earnings in the range of 5-8 cents. The Zacks Consensus Estimate for earnings is pegged at 7 cents, suggesting a decline of 12.5% year over year.

The consensus mark for fiscal third-quarter revenues is pegged at $96.5 million, indicating a rise of 43% from the prior-year quarter’s figure.

The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 237.2%.

In the fiscal second quarter, the company reported non-GAAP earnings of 7 cent per share against the Zacks Consensus Estimate of a loss of 10 cents. Total revenues of $95.1 million surpassed the consensus mark by 11.2%.

COUPA SOFTWARE Price, Consensus and EPS Surprise

 

 

Factors Likely to Influence Q3 Results

Coupa Software’s fiscal third-quarter performance is likely to have benefited from an expanding customer base. Efficient and smart spend-control programs that provide enhanced reporting and analytics have been the primary catalyst for Coupa Software’s expanding clientele. Such factors are likely to have benefitted the company’s subscription services revenues in the quarter to be reported.

Markedly, the company has been gaining traction in other available solutions such as Accelerate and virtual cards for POs. It has extended these solutions to partners like Citibank, Transfermate, Stripe and PayPal (PYPL - Free Report) .

International rollout of the company’s offerings is another positive factor. In this context, Coupa Software’s association with companies like Axiata Group, Shopify, Affirmed Networks, Auckland Savings Bank, Commonwealth Bank of Australia, Rakuten, Volkswagen Group Australia are noteworthy.

Additionally, innovation has enabled Coupa Software to foray across the global enterprise software ecosystem. Launches like Community Intelligence and Coupa Pay are yielding.  

However, rising operating expenses are likely to have exerted pressure on the company’s margins in the fiscal third quarter.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Coupa Software this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

Here are some stocks you may consider as our proven model shows that these have the right mix of elements to beat estimates this time:

Dollar General Corporation (DG - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank of 2. 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 +0.74% and a Zacks Rank of 3.

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