Avid Technology (AVID) closed the most recent trading day at $7.99, moving +1.14% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, added 0.67%.
Wall Street will be looking for positivity from AVID as it approaches its next earnings report date. On that day, AVID is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $77.43 million, down 21.55% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.35 per share and revenue of $360.41 million, which would represent changes of -31.37% and -12.48%, respectively, from the prior year.
Any recent changes to analyst estimates for AVID should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 61.36% lower within the past month. AVID is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, AVID currently has a Forward P/E ratio of 22.79. Its industry sports an average Forward P/E of 33.4, so we one might conclude that AVID is trading at a discount comparatively.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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