Back to top

Image: Bigstock

What to Expect from Five9 (FIVN) Stock this Earnings Season?

Read MoreHide Full Article

Five9 Inc. (FIVN - Free Report) is scheduled to report first-quarter 2017 results on May 3. Last quarter, the company posted a positive earnings surprise of 50%. Notably, the stock outperformed the Zacks Consensus Estimate in all the trailing four quarters with an average positive surprise of 36.36%.

Let us see how things are shaping up for this announcement.

Factors at Play

Five9 offers a virtual contact center cloud platform that acts as a hub for interaction between clients and customers. This facilitates contact center operations focused on inbound or outbound customer interactions within a single unified architecture. The company offers software products such as workforce management, speech recognition, predictive dialer and voice applications.

The cloud-based contact center solution industry has been witnessing growth over the past several quarters as organizations are looking for ways to minimize costs and improve customer support. We believe that Five9 has been capitalizing on this opportunity, which should reflect in its to-be-reported quarter.

Moreover, the company’s consistent focus on expanding its product portfolio will aid the top-line performance.

However, intensifying competition from small and large players like Cisco Systems (CSCO - Free Report) is likely to dent Five9’s first-quarter performance.

Five9, Inc. Price and EPS Surprise

 

Five9, Inc. Price and EPS Surprise | Five9, Inc. Quote

Earnings Whispers

Our proven model does not conclusively show that Five9 will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Earnings ESP for Five9 is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 10 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Although Five9’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:

AMTEK Inc. (AME - Free Report) , with an Earnings ESP of +1.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple Inc. (AAPL - Free Report) , with an Earnings ESP of +1.00%, and a Zacks Rank #3.

Sell These Stocks. Now.

Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.

See today's Zacks "Strong Sells" absolutely free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Apple Inc. (AAPL) - free report >>

Cisco Systems, Inc. (CSCO) - free report >>

AMETEK, Inc. (AME) - free report >>

Five9, Inc. (FIVN) - free report >>

Published in