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Will Top-Line Growth Benefit HubSpot (HUBS) Q1 Earnings?
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HubSpot, Inc. (HUBS - Free Report) is scheduled to report first-quarter 2023 results on May 3 after the closing bell. In the last reported quarter, the company reported an earnings surprise of 33.73%. It pulled off a trailing four-quarter earnings surprise of 21.56%, on average. The company is undertaking steady investment initiatives to incorporate advance technology such as AI to develop innovative solutions. The Cambridge, MA-based marketing and sales application provider is likely to have recorded higher revenues year over year, backed by its strategy of innovation and positive demand trends for its software solutions.
Factors at Play
In the first quarter, HubSpot unveiled two new AI-powered tools — Content Assistant and ChatSpot.ai — designed to save customers’ time and enhance their ability to connect with their audiences. Launched in public alpha, ChatSpot.ai leverages a natural language chat-based interface to allow users to perform a variety of tasks. These include adding contacts and companies to HubSpot's CRM, creating custom reports and drafting personalized sales emails.
Content Assistant is designed to help marketing and sales teams build and share high-quality, creative content quickly and easily. The Content Assistant simplify and streamline content marketing operations, saving team’s valuable time and energy by consolidating all their content marketing efforts into one place. Currently available in private beta, this tool offers multiple options and can help in writing content for various platforms, such as blog posts, landing pages, website pages, sales and marketing emails. Such initiatives are likely to have supported sales growth during the quarter.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $475 million, suggesting an increase from the year-ago quarter’s reported figure of $396 million. The consensus estimate for adjusted earnings per share is pegged at 82 cents, indicating growth from 54 cents reported in the prior year.
Earnings Whispers
Our proven model does not predict earnings beat for HubSpot this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -12.52% with the former pegged at 72 cents and the latter at 82 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Earnings ESP for Zebra Technologies Corporation (ZBRA - Free Report) is +3.06% and it carries a Zacks Rank of 2. The company is scheduled to report first quarter numbers on May 2.
The Earnings ESP for Splunk Inc. is +12.76% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on May 24.
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Will Top-Line Growth Benefit HubSpot (HUBS) Q1 Earnings?
HubSpot, Inc. (HUBS - Free Report) is scheduled to report first-quarter 2023 results on May 3 after the closing bell. In the last reported quarter, the company reported an earnings surprise of 33.73%. It pulled off a trailing four-quarter earnings surprise of 21.56%, on average. The company is undertaking steady investment initiatives to incorporate advance technology such as AI to develop innovative solutions. The Cambridge, MA-based marketing and sales application provider is likely to have recorded higher revenues year over year, backed by its strategy of innovation and positive demand trends for its software solutions.
Factors at Play
In the first quarter, HubSpot unveiled two new AI-powered tools — Content Assistant and ChatSpot.ai — designed to save customers’ time and enhance their ability to connect with their audiences. Launched in public alpha, ChatSpot.ai leverages a natural language chat-based interface to allow users to perform a variety of tasks. These include adding contacts and companies to HubSpot's CRM, creating custom reports and drafting personalized sales emails.
Content Assistant is designed to help marketing and sales teams build and share high-quality, creative content quickly and easily. The Content Assistant simplify and streamline content marketing operations, saving team’s valuable time and energy by consolidating all their content marketing efforts into one place. Currently available in private beta, this tool offers multiple options and can help in writing content for various platforms, such as blog posts, landing pages, website pages, sales and marketing emails. Such initiatives are likely to have supported sales growth during the quarter.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $475 million, suggesting an increase from the year-ago quarter’s reported figure of $396 million. The consensus estimate for adjusted earnings per share is pegged at 82 cents, indicating growth from 54 cents reported in the prior year.
Earnings Whispers
Our proven model does not predict earnings beat for HubSpot this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -12.52% with the former pegged at 72 cents and the latter at 82 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HubSpot, Inc. Price and EPS Surprise
HubSpot, Inc. price-eps-surprise | HubSpot, Inc. Quote
Zacks Rank: HubSpot currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post a beat this season:
Skyworks Solutions, Inc. (SWKS - Free Report) is set to release quarterly numbers on May 8. It has an Earnings ESP of +0.15% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Zebra Technologies Corporation (ZBRA - Free Report) is +3.06% and it carries a Zacks Rank of 2. The company is scheduled to report first quarter numbers on May 2.
The Earnings ESP for Splunk Inc. is +12.76% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on May 24.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.