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What's in Store for Asure Software (ASUR) in Q3 Earnings?

Zacks Equity Research

Asure Software ASUR is set to release its third-quarter 2019 results on Nov 11.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 8 cents, unchanged over the past 30 days and indicating a decline of 42.9% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for revenues is currently pegged at $25.3 million, indicating 7.9% increase from the figure reported in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 23.1%.

In the second quarter, Asure Software reported earnings of 8 cents per share, down 43% on a year-over-year basis. However, the figure beat the Zacks Consensus Estimate by 14.3%.

Revenues grew 13.8% year over year to $24.8 million and were consistent with the consensus mark. Notably, recurring revenues accounted for 82.2% of total revenues.

Asure Software Inc Price and EPS Surprise

Asure Software Inc Price and EPS Surprise

Asure Software Inc price-eps-surprise | Asure Software Inc Quote

Let us see how things have shaped up prior to this announcement.

Factors to Consider

Asure Software’s third-quarter results are expected to benefit from significant growth in recurring revenues, expanded clientele, and increased upsell and cross-sell opportunities.

Increased adoption of the company’s human capital management and workspace solutions is expected to have aided the top line in the quarter to be reported.

Further, the company expanded its cloud-based Time and Attendance solutions with the addition of the Time Clock Basic and Time Clock Elite series during the to-be-reported quarter.

The cost-effective and easy-to-use Time Clock basic series is expected to have attracted small and medium sized businesses in the to-be-reported quarter.

Moreover, the Time Clock elite series is likely to have been adopted by businesses of all sizes due to employee self-service features like requesting time off, viewing schedules and accruals and easy room scheduling.

The introduction of the TC series (Basic and Elite) is expected to have boosted Asure’s customer base in the third quarter.

What Our Model Says

According to the Zacks model, the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP increases the odds of an earnings beat.

Asure Software has a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell, before they are reported, with our Earnings ESP Filter.

Stocks With a Favorable Combination

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:

Momo MOMO has an Earnings ESP of +3.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Viacom VIAB has an Earnings ESP of +0.22% and a Zacks Rank #3.

International Game Technology IGT has an Earnings ESP of +20.00% and a Zacks Rank #3.

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