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ChannelAdvisor (ECOM) to Post Q2 Earnings: What's in Store?

Zacks Equity Research
·3 min read

ChannelAdvisor ECOM will release second-quarter 2020 results on Aug 6.

The company anticipates quarterly revenues of $37.3 million. The Zacks Consensus Estimate for revenues is pegged at $34.1 million, suggesting 6.8% year-over-year growth.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 20 cents per share. The consensus mark suggests sharp improvement from the year-ago quarter’s 5 cents per share.

The company’s earnings beat estimates in all of the trailing four quarters, the average surprise being 136.7%.

Let’s see how things have shaped up for the upcoming announcement.

ChannelAdvisor Corporation Price and Consensus

ChannelAdvisor Corporation Price and Consensus
ChannelAdvisor Corporation Price and Consensus

ChannelAdvisor Corporation price-consensus-chart | ChannelAdvisor Corporation Quote

Factors at Play

ChannelAdvisor’s second-quarter performance is likely to have benefited from the rising demand for its cloud-based solutions amid the coronavirus crisis. The company offers a cloud platform that helps brands and retailers improve their online performance by expanding sales channels, and facilitate communication with consumers around the world.

The social-distancing measures rolled out by economies across the world to contain the spread of COVID-19 have compelled organizations to shift to online business model.

During the second-quarter prelim results announced on Jul 24, ChannelAdvisor stated that it witnessed elevated e-commerce spending throughout the quarter thanks to the shift in consumer-buying habits amid the pandemic. This trend is likely to have boosted its top-line performance during the period in discussion.

Additionally, the company’s disciplined cost management and scalability of its business model are likely to have contributed to significant year-over-year improvement in second-quarter profitability.

What Our Model Says

Our proven model predicts an earnings beat for ChannelAdvisor this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

ChannelAdvisor carries a Zacks Rank of 3 and has an Earnings ESP of +52.54%, at present.

Other Stocks With Favorable Combinations

Here are some other companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Cogent Communications Holdings CCOI has an Earnings ESP of +11.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics SYNA has an Earnings ESP of +10.6 % and currently carries a Zacks Rank of 2.

Benefitfocus BNFT has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.

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Synaptics Incorporated (SYNA) : Free Stock Analysis Report
 
Cogent Communications Holdings, Inc. (CCOI) : Free Stock Analysis Report
 
ChannelAdvisor Corporation (ECOM) : Free Stock Analysis Report
 
Benefitfocus, Inc. (BNFT) : Free Stock Analysis Report
 
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Zacks Investment Research