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Mitek Systems (MITK) to Report Q2 Earnings: What's in Store?
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Mitek Systems, Inc. (MITK - Free Report) is slated to release second-quarter fiscal 2020 results on Apr 30.
For second-quarter fiscal 2020, Mitek expects revenues between $23 million and $23.5 million. The Zacks Consensus Estimate for quarterly revenues is pegged at $23.1 million, which indicates a rise of 15.8% from the year-ago quarter’s reported figure.
The consensus mark for earnings has been stable at 11 cents over the past 30 days, which indicates year-over-year growth of 57.1%.
Notably, the company has a trailing four-quarter positive earnings surprise of 31.67%, on average.
Let’s see how things have shaped up prior to this announcement.
Strong momentum in the identity verification market, especially in the financial services, gig economy and marketplace segments, are expected to have boosted transaction SaaS revenues in the to-be-reported quarter.
Notably, the Zacks Consensus Estimate for Services and other revenues, which include transactional SaaS revenues, is currently pegged at $12.1 million. The projection indicates growth of 14.5% from the previous quarter’s reported figure.
Notably, Mitek’s identity verification product — Mobile Verify — witnessed robust traction among banks in the previous quarter, being adopted by HSBC USA and a major bank in the EU. This trend is likely to have continued in the fiscal second quarter driven by the digital transformation in the banking sector.
Moreover, growing preference among millennials and GenX to deposit checks via mobile is likely to have driven adoption of the company’s mobile deposits solutions. This is likely to get reflected in fiscal second-quarter results.
Increasing popularity of the company's products boosts investors’ optimism. Notably, shares of Mitek have returned 22% in the year-to-date period against the industry’s decline of 12.1%.
Mitek’s expanding partner base is also likely to have aided it in acquiring more customers, which in turn is anticipated to have had a positive impact on the top line in the to-be-reported quarter.
Further, the global coronavirus pandemic has increased the demand for digital transactions and strong identity verification in banks as well as other institutions. This is likely to have increased adoption of the company’s solutions.
However, litigation expenses pertaining to a patent infringement lawsuit are expected to have exerted pressure on margins in fiscal second quarter.
What Our Model Says
Our proven model does not predict an earnings beat for Mitek 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.
Mitek has an Earnings ESP of 0.00% and a Zacks Rank #3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat this quarter:
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2.
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +5.85% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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Mitek Systems (MITK) to Report Q2 Earnings: What's in Store?
Mitek Systems, Inc. (MITK - Free Report) is slated to release second-quarter fiscal 2020 results on Apr 30.
For second-quarter fiscal 2020, Mitek expects revenues between $23 million and $23.5 million. The Zacks Consensus Estimate for quarterly revenues is pegged at $23.1 million, which indicates a rise of 15.8% from the year-ago quarter’s reported figure.
The consensus mark for earnings has been stable at 11 cents over the past 30 days, which indicates year-over-year growth of 57.1%.
Notably, the company has a trailing four-quarter positive earnings surprise of 31.67%, on average.
Let’s see how things have shaped up prior to this announcement.
Mitek Systems, Inc. Price and EPS Surprise
Mitek Systems, Inc. price-eps-surprise | Mitek Systems, Inc. Quote
Factors Likely to Have Influenced Q2 Results
Strong momentum in the identity verification market, especially in the financial services, gig economy and marketplace segments, are expected to have boosted transaction SaaS revenues in the to-be-reported quarter.
Notably, the Zacks Consensus Estimate for Services and other revenues, which include transactional SaaS revenues, is currently pegged at $12.1 million. The projection indicates growth of 14.5% from the previous quarter’s reported figure.
Notably, Mitek’s identity verification product — Mobile Verify — witnessed robust traction among banks in the previous quarter, being adopted by HSBC USA and a major bank in the EU. This trend is likely to have continued in the fiscal second quarter driven by the digital transformation in the banking sector.
Moreover, growing preference among millennials and GenX to deposit checks via mobile is likely to have driven adoption of the company’s mobile deposits solutions. This is likely to get reflected in fiscal second-quarter results.
Increasing popularity of the company's products boosts investors’ optimism. Notably, shares of Mitek have returned 22% in the year-to-date period against the industry’s decline of 12.1%.
Mitek’s expanding partner base is also likely to have aided it in acquiring more customers, which in turn is anticipated to have had a positive impact on the top line in the to-be-reported quarter.
Further, the global coronavirus pandemic has increased the demand for digital transactions and strong identity verification in banks as well as other institutions. This is likely to have increased adoption of the company’s solutions.
However, litigation expenses pertaining to a patent infringement lawsuit are expected to have exerted pressure on margins in fiscal second quarter.
What Our Model Says
Our proven model does not predict an earnings beat for Mitek 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.
Mitek has an Earnings ESP of 0.00% and a Zacks Rank #3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat this quarter:
Pixelworks, Inc. (PXLW - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2.
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +5.85% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>