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Factors to Note Ahead of Atlassian's (TEAM) Q1 Earnings
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Atlassian (TEAM - Free Report) is slated to report first-quarter fiscal 2023 results on Nov 3.
Atlassian projects fiscal first-quarter revenues between $795 million and $810 million ($802.5 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $801.6 million, suggesting growth of 30.5% from the year-ago reported figure.
The company estimates non-IFRS earnings between 37 cents and 38 cents per share for the fiscal first quarter. The Zacks Consensus Estimate is pegged at 38 cents per share, suggesting a 17.4% decline from the 46 cents reported in the year-ago period.
Atlassian surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 25.1%.
Shares of Atlassian have outperformed the Zacks Internet – Software industry in the year-to-date (YTD) period. TEAM stock has plunged 47.4% YTD, while the industry has declined 58.7%.
YTD Price Performance
Image Source: Zacks Investment Research
Factors at Play
The rising adoption of TEAM’s cloud-based solutions and the massive digitalization trend in organizations, along with the growing hybrid working trend, are likely to have favored the fiscal first-quarter performance. The increasing demand for the company’s cloud products from the new and existing clients using on-premises products might have acted as a tailwind.
Growing traction for core products like Jira Software and Confluence Cloud and the rising adoption of new products like Jira Service Management may have acted as key catalysts. An improvement in product quality and performance, multiple product launches and increased pricing are likely to have boosted the firm’s performance as well.
Robust growth in subscription revenues, aided by the solid uptake of the company’s subscription-based offerings, is likely to get reflected in the to-be-reported quarter’s results.
However, increased investments in its systems and infrastructure, research & development, and sales and marketing initiatives might have weighed on the bottom line in the first quarter.
What Our Model Unveils
Our proven model does not conclusively predict an earnings beat for TEAM this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Atlassian currently carries a Zacks Rank of #5 (Strong Sell) and has 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 the Favorable Combination
Per our model, Fortinet (FTNT - Free Report) , Baidu (BIDU - Free Report) and CDW Corporation (CDW - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Fortinet is slated to report third-quarter 2022 results on Nov 2. The company carries a Zacks Rank #2 and has an Earnings ESP of +2.44% at present. Fortinet’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 10.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at 27 cents per share, suggesting a year-over-year improvement of 35%. FTNT’s quarterly revenues are estimated to increase 29.5% year over year to $1.12 billion.
Baidu currently carries a Zacks Rank #2 and has an Earnings ESP of +0.82%. The company is expected to report its third-quarter 2022 results on Nov 16. Baidu’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 58.1%.
The Zacks Consensus Estimate for Baidu’s third-quarter earnings stands at $2.44 per share, indicating a year-over-year improvement of 7%. BIDU is estimated to report revenues of $4.74 billion, which suggests a decline of 4.3% from the year-ago quarter.
CDW carries a Zacks Rank #3 and has an Earnings ESP of +0.31%. The company is scheduled to report third-quarter 2022 results on Nov 2. CDW’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.8%.
The Zacks Consensus Estimate for CDW’s third-quarter earnings is pegged at $2.52 per share, indicating a year-over-year increase of 18.3%. The consensus mark for revenues stands at $6.21 billion, suggesting a year-over-year increase of 17.2%.
Image: Bigstock
Factors to Note Ahead of Atlassian's (TEAM) Q1 Earnings
Atlassian (TEAM - Free Report) is slated to report first-quarter fiscal 2023 results on Nov 3.
Atlassian projects fiscal first-quarter revenues between $795 million and $810 million ($802.5 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $801.6 million, suggesting growth of 30.5% from the year-ago reported figure.
The company estimates non-IFRS earnings between 37 cents and 38 cents per share for the fiscal first quarter. The Zacks Consensus Estimate is pegged at 38 cents per share, suggesting a 17.4% decline from the 46 cents reported in the year-ago period.
Atlassian surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 25.1%.
Shares of Atlassian have outperformed the Zacks Internet – Software industry in the year-to-date (YTD) period. TEAM stock has plunged 47.4% YTD, while the industry has declined 58.7%.
YTD Price Performance
Image Source: Zacks Investment Research
Factors at Play
The rising adoption of TEAM’s cloud-based solutions and the massive digitalization trend in organizations, along with the growing hybrid working trend, are likely to have favored the fiscal first-quarter performance. The increasing demand for the company’s cloud products from the new and existing clients using on-premises products might have acted as a tailwind.
Growing traction for core products like Jira Software and Confluence Cloud and the rising adoption of new products like Jira Service Management may have acted as key catalysts. An improvement in product quality and performance, multiple product launches and increased pricing are likely to have boosted the firm’s performance as well.
Robust growth in subscription revenues, aided by the solid uptake of the company’s subscription-based offerings, is likely to get reflected in the to-be-reported quarter’s results.
However, increased investments in its systems and infrastructure, research & development, and sales and marketing initiatives might have weighed on the bottom line in the first quarter.
What Our Model Unveils
Our proven model does not conclusively predict an earnings beat for TEAM this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Atlassian currently carries a Zacks Rank of #5 (Strong Sell) and has 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 the Favorable Combination
Per our model, Fortinet (FTNT - Free Report) , Baidu (BIDU - Free Report) and CDW Corporation (CDW - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Fortinet is slated to report third-quarter 2022 results on Nov 2. The company carries a Zacks Rank #2 and has an Earnings ESP of +2.44% at present. Fortinet’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 10.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at 27 cents per share, suggesting a year-over-year improvement of 35%. FTNT’s quarterly revenues are estimated to increase 29.5% year over year to $1.12 billion.
Baidu currently carries a Zacks Rank #2 and has an Earnings ESP of +0.82%. The company is expected to report its third-quarter 2022 results on Nov 16. Baidu’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 58.1%.
The Zacks Consensus Estimate for Baidu’s third-quarter earnings stands at $2.44 per share, indicating a year-over-year improvement of 7%. BIDU is estimated to report revenues of $4.74 billion, which suggests a decline of 4.3% from the year-ago quarter.
CDW carries a Zacks Rank #3 and has an Earnings ESP of +0.31%. The company is scheduled to report third-quarter 2022 results on Nov 2. CDW’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.8%.
The Zacks Consensus Estimate for CDW’s third-quarter earnings is pegged at $2.52 per share, indicating a year-over-year increase of 18.3%. The consensus mark for revenues stands at $6.21 billion, suggesting a year-over-year increase of 17.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.