HubSpot (HUBS) To Report Q4 Earnings: What's In The Cards?
Zacks Investment Research | Feb 12, 2018 04:22AM ET
HubSpot, Inc. (NYSE:HUBS) 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 (NASDAQ:FB) 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.
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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 Zacks Investment Research
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