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SailPoint (SAIL) to Report Q1 Results: What's in the Cards?

Zacks Equity Research

SailPoint Technologies Holdings, Inc. SAIL will report first-quarter 2019 results on May 8 after the bell. Shares of the company have gained 5.2% over the past six months, outperforming the 3.5% rally of the industry it belongs to.

What to Expect This Time?

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $60.3 million, indicating growth of 21.2% from the year-ago quarter’s actual figure.

The expected increase is likely to be due to continued strong demand for the company’s identity governance solutions, especially in international markets. It expects significant year-over-year growth insubscription and licensing, and slight growth in services revenues. It guided first quarter revenues to be between $59.5 million and $61 million.

Sequentially, revenues are expected to decline 25.2%. This is because the company’s quarterly sales are impacted by seasonal fluctuation in demand, with highest sales in the fourth quarter and lowest in the first quarter.

In the fourth quarter of 2018, SailPoint’s revenues of $80.6 million increased 18.9% year over year and 21.4% sequentially.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at a loss of a penny. This compares to 19 cents reported in the prior quarter and 2 cents reported in the year-ago quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

SailPoint has an Earnings ESP of 0.00% and a Zacks Rank #1, a combination that makes surprise prediction difficult.

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings this season:

Blucora BCOR, with an Earnings ESP of +5.29% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Green Dot GDOT has an Earnings ESP of +0.30% and a Zacks Rank #2.

Envestnet ENV, with an Earnings ESP of +0.56% and a Zacks Rank of 3.

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Blucora, Inc. (BCOR) : Free Stock Analysis Report
 
Envestnet, Inc (ENV) : Free Stock Analysis Report
 
Green Dot Corporation (GDOT) : Free Stock Analysis Report
 
SailPoint Technologies Holdings, Inc. (SAIL) : Free Stock Analysis Report
 
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