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What's in the Offing for MINDBODY (MB) in Q3 Earnings?
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MINDBODY, Inc. is slated to release third-quarter 2017 results on Oct 26. The question lingering in the minds of investors is if MINDBODY will be able to deliver a positive earnings surprise in the to-be-reported quarter.
Last quarter, the company posted a narrower-than-expected loss, resulting in a positive surprise of 80%. The stock surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 43.2%.
What to Think?
The company might witness a year-over-year increase in revenues and earnings in the to-be-reported quarter. The current Zacks Consensus Estimate for the quarter under review is pegged at a loss of 4 cents, which is narrower than the year-ago period loss of 9 cents. Further, analysts polled by Zacks expect revenues of $46 million, up 31.4% from the year-ago quarter.
Factors to Affect Q3 Results
MINDBODY develops cloud-based business management software and payments platform for the wellness services industry. In the last reported quarter, MINDBODY’s sales grew 31% year over year, benefiting from 29% increase in Subscription and services revenues,and 37% increase in Payments revenues. Further, during the quarter, the company continued to focus on subscriber acquisition efforts which in turn helped it to contribute significant amounts of inventory and enabled rapid growth in consumer adoption and engagement.
Notably, sales from Subscription and services revenues constituted about 59% of MINDBODY’s total revenues, which is the highest among all segments. The Zacks Consensus Estimate for Subscription and services is pegged at $27.2 million. Payments revenues accounted for 40% of the total revenues in the last reported quarter. The Zacks Consensus Estimate for Payments revenues is pegged at $17.9 million.
The company provides its services to over 59,000 businesses in over 130 countries worldwide. With such a huge client base, it is anticipated to post impressive earnings numbers in the third quarter. Significant investments in growth areas for improving implementation timelines, particularly for the web and mobile applications products, will boost profitability.
Furthermore, the company recently, acquired Lymber Wellness, Inc. The buyout will help the company to integrate yield management technology into its platform and promote subscriber and consumer adoption. These strategic acquisitions and continuous efforts to enhance its software and payments platform are likely to be reflected in the to-be-reported quarterly results.
Our proven model does not conclusively show that MINDBODY is likely beat the Zacks Consensus Estimate in its upcoming release. 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. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for MINDBODY is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 4 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MINDBODY carries a Zacks Rank #2. Though a Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Applied Materials, Inc. (AMAT - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #1.
Intel Corporation (INTC - Free Report) has an Earnings ESP of +0.06% and a Zacks Rank #1.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
What's in the Offing for MINDBODY (MB) in Q3 Earnings?
MINDBODY, Inc. is slated to release third-quarter 2017 results on Oct 26. The question lingering in the minds of investors is if MINDBODY will be able to deliver a positive earnings surprise in the to-be-reported quarter.
Last quarter, the company posted a narrower-than-expected loss, resulting in a positive surprise of 80%. The stock surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 43.2%.
What to Think?
The company might witness a year-over-year increase in revenues and earnings in the to-be-reported quarter. The current Zacks Consensus Estimate for the quarter under review is pegged at a loss of 4 cents, which is narrower than the year-ago period loss of 9 cents. Further, analysts polled by Zacks expect revenues of $46 million, up 31.4% from the year-ago quarter.
Factors to Affect Q3 Results
MINDBODY develops cloud-based business management software and payments platform for the wellness services industry. In the last reported quarter, MINDBODY’s sales grew 31% year over year, benefiting from 29% increase in Subscription and services revenues,and 37% increase in Payments revenues. Further, during the quarter, the company continued to focus on subscriber acquisition efforts which in turn helped it to contribute significant amounts of inventory and enabled rapid growth in consumer adoption and engagement.
Notably, sales from Subscription and services revenues constituted about 59% of MINDBODY’s total revenues, which is the highest among all segments. The Zacks Consensus Estimate for Subscription and services is pegged at $27.2 million. Payments revenues accounted for 40% of the total revenues in the last reported quarter. The Zacks Consensus Estimate for Payments revenues is pegged at $17.9 million.
The company provides its services to over 59,000 businesses in over 130 countries worldwide. With such a huge client base, it is anticipated to post impressive earnings numbers in the third quarter. Significant investments in growth areas for improving implementation timelines, particularly for the web and mobile applications products, will boost profitability.
Furthermore, the company recently, acquired Lymber Wellness, Inc. The buyout will help the company to integrate yield management technology into its platform and promote subscriber and consumer adoption. These strategic acquisitions and continuous efforts to enhance its software and payments platform are likely to be reflected in the to-be-reported quarterly results.
MINDBODY, Inc. Price and EPS Surprise
MINDBODY, Inc. Price and EPS Surprise | MINDBODY, Inc. Quote
What the Zacks Model Unveils?
Our proven model does not conclusively show that MINDBODY is likely beat the Zacks Consensus Estimate in its upcoming release. 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. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for MINDBODY is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 4 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MINDBODY carries a Zacks Rank #2. Though a Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials, Inc. (AMAT - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #1.
Intel Corporation (INTC - Free Report) has an Earnings ESP of +0.06% and a Zacks Rank #1.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>