In This Article:
Call center software provider Five9 (NASDAQ: FIVN) will be reporting results tomorrow after market hours. Here’s what investors should know.
Five9 beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $252.1 million, up 13.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but underwhelming revenue guidance for the next quarter.
Is Five9 a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Five9’s revenue to grow 10.8% year on year to $255.1 million, slowing from the 16% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Five9 has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.6% on average.
Looking at Five9’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. 8x8’s revenues decreased 2.2% year on year, beating analysts’ expectations by 1.5%, and Microsoft reported revenues up 16%, topping estimates by 1.6%. 8x8 traded up 18.5% following the results while Microsoft was down 6.3%.
Read our full analysis of 8x8’s results here and Microsoft’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 7% on average over the last month. Five9 is up 13.4% during the same time and is heading into earnings with an average analyst price target of $51.73 (compared to the current share price of $31.76).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.