Wall Street is hoping that the theme of strong earnings results will continue this week. There’s a slightly smaller heap of reports for us to get through, but there are still some big names set to release numbers for the second quarter.
Here are the top three companies we think investors should watch out for this week.
The electronic signature manager has continued to benefit from the work-from-home trend, evidenced by its stock surging more than 35% year-to-date. Therefore, Wall Street is expecting big numbers when DocuSign (NASDAQ: DOCU) reports numbers this week as it is a top e-signature play in the thriving industry.
Analysts predict that the tech company will post Q2 earnings of $0.39 per share, which would represent an almost 130% year-over-year (YoY) increase, on revenues of $482.48 million, marking a 41% jump from the year-ago quarter. Subscriber revenue growth is a key metric that investors will look out for. In Q1, the company reported a 61% YoY increase so investors will be hoping for DocuSign to post another big leap.
While the company has thrived, along with its margins, the stock is still trading at around 28 times its forward revenue which might suggest its share price is overvalued. As some offices have returned to business-as-usual in-person meetings, there might be an indication of slowing growth for the rest of the year.
As we have seen so far this earnings season, many tech companies, including most of Big Tech, are also warning of a slowdown. If DocuSign follows suit and gives a similar forecast, the stock might fall.
When is DocuSigns’s earnings call?
DocuSign reports earnings on Thursday, September 2 after the bell at 5:00 PM Eastern Time. To read DocuSigns’s earnings report, visit the company’s investor relations page here.
Wall Street is expecting a decline YoY in the company’s earnings for Q2, predicting a quarterly loss of $0.16 per share, representing a change of -300%. While PagerDuty’s (NYSE: PD) revenues are expected to come in at $65.39 million, up 29% YoY.
The company has not been profitable over the past year, but the stock is still up over 28% over the past 12 months. This is because investors have faith that the firm will turn a big profit in the near future. Therefore, it will be important for PageDuty to report more rapid revenue growth for Q2 as this will get them on the path to profitability sooner.
In early June, the company also announced a new partnership with JFrog, a liquid software firm. According to PagerDuty, the partnership will benefit it by not only helping its customers but also driving sales. We can be sure to hear some questions about this new partnership deal on the earnings call.
When is PagerDuty’s earnings call?
PagerDuty reports earnings for Q2 2021 on Thursday, September 2 after the bell at 5:00 PM Eastern Time. To listen to PagerDuty’s earnings call, visit the investor relations page here.
Just like PagerDuty, nCino (NASDAQ: NCNO) is also expected to report an earnings loss on higher sales on its earnings call this week. Analysts are gauging for a quarterly loss of $0.06 per share, which represents a YoY change of -500%, on revenues of $63.67 million, up 30.6% YoY.
In the first quarter, nCino smashed estimates, posting revenue of $62.4 million, a 39% increase from the same time last year. Another beat like this should boost its share price, which is down more than 13% year-to-date.
Digital transformation is a theme that investors are very bullish on, and as nCino is disrupting the banking space, this is a very profitable space to be in. While its earnings and share price are lagging slightly, this is still a stock to watch for the long-term. So, short-term earnings should not concern shareholders too much with this stock.
When is nCino’s earnings call?
nCino reports earnings on Wednesday, September 1 after the bell at 5:00 PM Eastern Time. To read nCino’s earnings report, visit the company’s investor relations page here.
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Financial Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.