Collaboration software company Atlassian (NASDAQ: TEAM) will be reporting results this Thursday after market hours. Here’s what you need to know.
Atlassian beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $1.38 billion, up 22.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Is Atlassian a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Atlassian’s revenue to grow 18% year on year to $1.40 billion, slowing from the 21.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Atlassian has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.
Looking at Atlassian’s peers in the productivity software segment, only Pegasystems has reported results so far. It beat analysts’ revenue estimates by 8.5%, delivering year-on-year sales growth of 17.3%. The stock traded up 15% on the results.
Read our full analysis of Pegasystems’s earnings results here.Investors in the productivity software segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Atlassian’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $246.24 (compared to the current share price of $163.90).
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.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
