Back to top

Image: Bigstock

HubSpot (HUBS) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

HubSpot, Inc. (HUBS - Free Report) is set to release fourth-quarter 2017 results on Feb 13, after market close.

The company has displayed an impressive record of earnings surprises in the trailing four quarters, with an average positive surprise of 199.38%.

In third-quarter 2017, Hubspot reported adjusted earnings of 3 cents per share against a loss of 5 cents per share in the year-ago quarter.

Moreover, revenues of $97.7 million increased 38% year over year. The figure surpassed the Zacks Consensus Estimate of $95.96 million as well as the company’s guided range of $92.8-$93.8 million.

Fourth-Quarter Guidance

HubSpot expects total revenues for fourth-quarter 2017 between $101 million and $102 million. The Zacks Consensus Estimate is pegged at $101.6 million.

The Zacks Consensus Estimate for Professional Services and Other segment revenues is $4.62 million, while that of Subscription revenues is $97 million.

HubSpot expects non-GAAP operating income in the range of $1.5–$2.5 million for the soon-to-be-reported quarter. Moreover, non-GAAP earnings are expected between 6 cents and 8 cents per share. The Zacks Consensus Estimate is currently pegged at 7 cents per share.

Hubspot’s stock has gained 58.6% year to date, substantially outperforming the 23.2% rally of the industry it belongs to.



Let’s see how things are shaping up for this announcement.

Factors to Consider

Hubspot’s inbound marketing and sales software suite is gaining wide acceptance. In the last reported quarter, total customers increased 47% year over year to 37,450. Moreover, the rapid adoption of One Hubspot and Hubspot CRM tools are likely to boost top-line growth.

HubSpot, Inc. Price and EPS Surprise

 

Additionally, the acquisitions of Motion AI and Kemvi reflect the company’s focus on integrating artificial intelligence (AI) in its offerings, as well as expanding its solutions portfolio.

Further, management is banking on deeper integrations with Facebook and introduction of a new content strategy approach called Campaign Reporting. Moreover, integration with Shopify is expected to be a growth driver.

Lastly, the launch of Content Strategy, a tool to optimize search engine optimization (SEO) technique, is a positive for the company’s product suite and top line.

Favorable ESP

Per the proven Zacks model, Hubspot is likely to deliver a positive earnings surprise in the fourth-quarter due to a favorable combination of Zacks Rank #3 (Hold) and Earnings ESP of +1.32%.

Accordingly, the Sell-rated stocks (#4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Micron Technology (MU - Free Report) has an Earnings ESP of +1.83% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

SS&C Technologies Holdings (SSNC - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2 (Buy).

Broadcom (AVGO - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #3 (Hold).

Wall Street’s Next Amazon

Zacks EVP, Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in