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Alteryx (AYX) to Report Q4 Earnings: What's in the Cards?

Zacks Equity Research
Triumph Group's (TGI) fourth-quarter fiscal 2019 organic sales came in flat as increased shipments for narrow body programs were offset by weak business jet volumes.

Alteryx AYX is set to release fourth-quarter 2018 results on Feb 27.

In the last reported quarter, Alteryx’s earnings of 8 cents per share beat the Zacks Consensus Estimate of a loss of 5 cents. The figure was much better than earnings of 2 cents reported in the year-ago quarter.

Revenues of $54.2 million surged 59% on a year-over-year basis.

For fourth-quarter fiscal 2019, revenues are anticipated between $56.5 million and $57.5 million. Non-GAAP net loss is anticipated between 2 cents and 3 cents.

The Zacks Consensus Estimate currently stands at a loss of 2 cents, unchanged over the past 30 days. The consensus mark for revenues is $57.1 million, reflecting year-over-year growth of 48%.

Let’s see how things are shaping up for this announcement.

Factors to Watch

Alteryx is expected to benefit from increasing demand for advanced analytics. The company’s innovative portfolio (with the launch of new 2018.3 version) is not only helping it attract new customers but also retain existing ones. Notably, in the last reported quarter, dollar-based net revenue retention was 131%.

Alteryx added 375 net new customers bringing the total to 4,315, including roughly 26% of the Global 2000. New customers include Workday, Textron, 7-Eleven, Cowen and Company, J.Crew, John Hancock and Michael Kors, among others.

Existing customers, including Cisco Systems, CIBC, Grant Thornton, McDonald's, Pacific Life Insurance Company and UBS, increased their spending on Alteryx’s platform.

Further, Alteryx’s international footprint expanded in the last reported quarter with the addition of customers from Netherlands (AkzoNobel), Belgium (Anheuser InBev), Germany (IKB Deutsche Industriebank), France (National Rugby League), Saudi Arabia (Real Estate Development Fund) and the United Kingdom Oxford (University Press).

Additionally, Latin America revenues more than doubled in the third quarter. Australia was another region where Alteryx witnessed significant growth.

The expanding international footprint is expected to drive top-line growth. Furthermore, the newly created verticalized sales team is likely to improve penetration in select verticals including public sector and healthcare.

Moreover, Alteryx continues to win industry-wide accolades. The company has been placed at Deloitte’s Technology Fast 500 list for 2018. Market research firm Gartner recently named the company as a challenger in its 2019 Magic Quadrant for Data Science and Machine Learning Platforms.

However, increasing expenses related to support and professional services organization are expected to hurt gross margin expansion. Moreover, higher expenses related to marketing and awareness creation are anticipated to negatively impact profitability.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Alteryx has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are a few stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Momo Inc. MOMO has an Earnings ESP of +1.55% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ciena Corporation CIEN has an Earnings ESP of +1.70% and a Zacks Rank #3.

Broadcom AVGO has an Earnings ESP of +2.68% and a Zacks Rank #3.

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