Factors To Consider Ahead Of Synchronoss' (SNCR) Q1 Earnings
Zacks Investment Research | May 07, 2019 08:22AM ET
Synchronoss Technologies (NASDAQ:SNCR) is set to report first-quarter 2019 results on May 9.
Notably, the company missed the Zacks Consensus Estimate in three of the trailing four quarters, the average negative earnings surprise being 489.6%.
In the last reported quarter, non-GAAP loss of $2.49 per share lagged the Zacks Consensus Estimate of a loss of 15 cents. Revenues of $82 million also lagged the consensus mark of $86 million.
Synchronoss’ first-quarter 2019 results are expected to benefit from the deals with the likes of Rackspace, British Telecom, Assurant (NYSE:AIZ) and Verizon (NYSE:VZ). The reselling agreements with Rackspace (DXP partnership) and Assurant (white-label Cloud agreement) are expected to drive the top line.
Further, increasing percentage of recurring revenues (83% of total revenues in the fourth quarter) reflects successful transition of Synchronoss from a custom solutions provider to a product and platform-oriented software-as-a-service (SaaS) company.
However, Synchronoss expects margins to remain under pressure in the first quarter despite undertaking several cost-saving initiatives. Additionally, intense competition in cloud from large vendors is expected to hurt the company’s top line in first-quarter 2019.
Synchronoss Technologies, Inc. Price and EPS Surprise
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