VASCO (VDSI) Q1 Earnings: What's In Store For The Stock?
Zacks Investment Research | Apr 24, 2017 10:35PM ET
Leading security software firm VASCO Data Security International Inc. (NASDAQ:VDSI) is set to report first-quarter 2017 results after market close on Apr 27. The company topped estimates in each of the last four quarters with a positive average earnings surprise of 118.13%.
Let’s see how things are shaping up for this announcement.
Key Factors to Consider
VASCO is a global leader in authentication, electronic signatures and identity management. The company’s strategic investment in Promon AS helps both the firms work together to develop mobile application security solutions. The synergies of the deal will likely help augment the company’s top line in the to-be-reported quarter.
During the last quarter, VASCO announced the availability of its eSignLive Digital Mortgage Solution, a cloud based eMortgage solution. The components of the solution include e-signatures, e-Delivery, e-Closing and e-Vaulting. It can be used as standalone application to help ensure regulatory compliance and enhance customer experience with a completely digital mortgage process. This is expected to augment the company’s revenues in the quarter.
The company continues to make investments to build its capabilities in sales, marketing and R&D. It remains focused on generating high operating margins, driven by continuous investments and a shift in the product mix with higher gross-margin products. However, these investments may lead to higher expenses, in turn curbing its profitability in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that VASCO is likely to beat on earnings this quarter. This is because a stock needs to have both a positive .
Pepsico, Inc. (NYSE:PEP) with an Earnings ESP of +1.10% and a Zacks Rank #3.
Ensco plc (NYSE:ESV) with an Earnings ESP of +22.22% and a Zacks Rank #3.
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