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Factors to Consider Ahead of eGain's (EGAN) Q3 Earnings

Zacks Equity Research

eGain Corporation EGAN is slated to report third-quarter fiscal 2019 results on May 8.

Notably, the company beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 288.9%.
 
In the last reported quarter, the company benefited from strong Software-as-a-Service (SaaS) revenues and the trend is expected to continue in the to-be-reported quarter. SaaS revenues surged 53% year over year to $11.9 million in the second quarter of fiscal 2019.

eGain benefits from continuing migration of legacy on-premise customers to cloud. Additionally, the company’s focus to penetrate the mid-market (less than 10% of bookings in the second quarter) is noteworthy. We expect the third-quarter results to provide further visibility about the company’s initiatives in this regard.

Moreover, eGain’s customer engagement solutions are witnessing increase in adoption. The company’s virtual assistants (chatbots), messaging, social and AI solutions are likely to majorly drive third-quarter new bookings.

Further, eGain’s strong partner base that includes the likes of Cisco, Avaya and Amazon Connect is a key catalyst in driving bookings. The company continues to win customers on a regular basis that bodes well for SaaS revenues.

eGain Corporation Price and EPS Surprise

 

eGain Corporation Price and EPS Surprise | eGain Corporation Quote

Notably, the Zacks Consensus Estimate for revenues pegged at $16.9 million indicates an increase of 7.4% from the year-ago quarter’s reported figure.

Moreover, the consensus mark for third-quarter fiscal 2019 earnings has remained stable at 3 cents over the past 30 days. The figure suggests growth of 50% from the figure reported in the year-ago period.

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. Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

eGain has a Zacks Rank #3 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 That Warrant a Look

Here are three stocks you may want to consider, as our model suggests that these have the right combination of elements to deliver an earnings beat this earnings season.

Synopsis SNPS has an Earnings ESP of +1.15% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies A has an Earnings ESP of +2.10% and a Zacks Rank #2.

Intuit INTU has an Earnings ESP of +0.59% and a Zacks Rank #2.

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eGain Corporation (EGAN) : Free Stock Analysis Report
 
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
 
Intuit Inc. (INTU) : Free Stock Analysis Report
 
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
 
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