We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Avaya (AVYA) to Report Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
Avaya Holdings Corp. is set to report first-quarter fiscal 2020 results on Feb 10.
For the quarter, the company expects non-GAAP revenues in the range of $700-$720 million.
The Zacks Consensus Estimate for revenues is currently pegged at $710 million, indicating a decline of 3.8% from the figure reported in the year-ago quarter.
The consensus mark for first-quarter fiscal 2020 earnings has been steady at 72 cents over the past 30 days. The estimate indicates a year-over-year decline of 8.9%.
Notably, the company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same in one. It has negative earnings surprise of 25.16% on average.
Let’s see how things have shaped up for this announcement.
Avaya’s first-quarter fiscal 2020 results are likely to benefit from its strategic partnership with RingCentral (RNG - Free Report) for an UCaaS solution, as well as its partnerships with Amazon (AMZN - Free Report) , Alphabet’s (GOOGL - Free Report) Google division, IBM, and Verint among others.
These partnerships have expanded Avaya’s cloud, services and artificial intelligence (AI) capabilities and positioned it well to deliver unique and differentiated solutions. This is likely to have driven top-line growth during the quarter.
Moreover, the company’s investments in developing its cloud capabilities have made it well positioned to address the strong enterprise demand for cloud. The expansion of ReadyNow, Avaya’s private cloud solution, into the EMEA and APAC regions is expected to have contributed to Avaya’s growth during the quarter.
Notably, Avaya had booked $90 million of total contract value for ReadyNow by November, 2019.
The company also launched the IX-CC, its own Contact Center-as-a-Service platform, which is expected to have driven subscription growth during the quarter.
However, the declining trend in the company’s professional services segment is likely to have hurt growth during the first quarter of fiscal 2020.
Further, the shift in Avaya’s unified communications (UC) business in the mid-market to cloud-based offerings is expected to have been a headwind.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Avaya (AVYA) to Report Q1 Earnings: What's in the Cards?
Avaya Holdings Corp. is set to report first-quarter fiscal 2020 results on Feb 10.
For the quarter, the company expects non-GAAP revenues in the range of $700-$720 million.
The Zacks Consensus Estimate for revenues is currently pegged at $710 million, indicating a decline of 3.8% from the figure reported in the year-ago quarter.
The consensus mark for first-quarter fiscal 2020 earnings has been steady at 72 cents over the past 30 days. The estimate indicates a year-over-year decline of 8.9%.
Notably, the company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same in one. It has negative earnings surprise of 25.16% on average.
Let’s see how things have shaped up for this announcement.
Avaya Holdings Corp. Price and EPS Surprise
Avaya Holdings Corp. price-eps-surprise | Avaya Holdings Corp. Quote
Factors to Consider
Avaya’s first-quarter fiscal 2020 results are likely to benefit from its strategic partnership with RingCentral (RNG - Free Report) for an UCaaS solution, as well as its partnerships with Amazon (AMZN - Free Report) , Alphabet’s (GOOGL - Free Report) Google division, IBM, and Verint among others.
These partnerships have expanded Avaya’s cloud, services and artificial intelligence (AI) capabilities and positioned it well to deliver unique and differentiated solutions. This is likely to have driven top-line growth during the quarter.
Moreover, the company’s investments in developing its cloud capabilities have made it well positioned to address the strong enterprise demand for cloud. The expansion of ReadyNow, Avaya’s private cloud solution, into the EMEA and APAC regions is expected to have contributed to Avaya’s growth during the quarter.
Notably, Avaya had booked $90 million of total contract value for ReadyNow by November, 2019.
The company also launched the IX-CC, its own Contact Center-as-a-Service platform, which is expected to have driven subscription growth during the quarter.
However, the declining trend in the company’s professional services segment is likely to have hurt growth during the first quarter of fiscal 2020.
Further, the shift in Avaya’s unified communications (UC) business in the mid-market to cloud-based offerings is expected to have been a headwind.
Zacks Rank
Avaya currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>