DecisionPoint (DPSI) to Post Q3 Earnings: What's in Store?
DecisionPoint Systems DPSI is scheduled to report third-quarter 2023 results on Nov 14.
The company expects revenues to be between $27 million and $29 million. The Zacks Consensus Estimate is pegged at $28.1 million, suggesting an improvement of 9.3% from a year ago.
The consensus mark for third-quarter earnings is pegged at 7 cents per share. The company reported earnings of 16 cents in the prior-year quarter. DecisionPoint has a trailing four-quarter earnings surprise of 591.7%, on average.
In the last reported quarter, DPSI reported earnings of 13 cents compared with 11 cents a year ago. The Zacks Consensus Estimate was pegged at 4 cents per share. Revenues increased 12.4% year over year to $30.9 million and topped the consensus mark by 4.8%.
DecisionPoint Systems Inc. Price and EPS Surprise
DecisionPoint Systems Inc. price-eps-surprise | DecisionPoint Systems Inc. Quote
Factors to Consider
Increasing demand for DecisionPoint’s comprehensive product portfolio of managed services and professional services like consulting, staging and deployment installation is likely to have favored the top line in the third quarter. Increasing cross-selling opportunities bode well.
Rising adoption of its products and services across verticals like grocery and specialty retail, healthcare, distribution and transportation along with geographic expansion is a tailwind.
In April 2023, it completed the acquisition of Macro Integration Services (MIS), which provides hardware, software and project services solutions mainly to companies in the retail sector. It also serves scales grocery, quick-service restaurants or QSR and convenience stores verticals. The addition of new services and capabilities like digital signage and video systems is likely to have boosted DPSI’s margin performance.
The acquisition of MIS has shifted product mix toward higher gross margin software and services, and expanded its presence in the retail vertical, particularly grocery and food service.
However, macroeconomic uncertainty, volatile supply-chain dynamics and increasing integration risks owing to frequent buyouts might have dented the to-be-reported quarter’s performance.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DPSI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
DPSI has an Earnings ESP of 0.00% and a Zacks Rank #3. 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 some stocks you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around.
Walmart WMT has an Earnings ESP of +0.63% and a Zacks Rank #2. WMT is scheduled to report third-quarter fiscal 2024 earnings on Nov 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WMT’s to-be-reported quarter’s earnings and revenues is pegged at $1.51 per share and $159.2 billion, respectively. The stock has risen 20.1% in the past year.
The TJX Companies, Inc TJX has an Earnings ESP of +2.60% and a Zacks Rank #3. TJX is set to post third-quarter fiscal 2024 results on Nov 15.
The Zacks Consensus Estimate for TJX’s to-be-reported quarter’s earnings and revenues is pegged at 97 cents per share and $13.05 billion, respectively. Shares of TJX have gained 24.8% in the past year.
Ross Stores, Inc ROST has an Earnings ESP of +2.08% and carries a Zacks Rank #2. ROST is slated to release third-quarter 2023 numbers on Nov 16.
The Zacks Consensus Estimate for ROST’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $4.83 billion, respectively. Shares of ROST have increased 30.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
DecisionPoint Systems Inc. (DPSI) : Free Stock Analysis Report
