Clarivate (CCC) to Report Q3 Earnings: What's in the Cards?

Clarivate Plc CCC is set to release third-quarter 2020 results on Oct 29.

The Zacks Consensus Estimate for revenues is currently pegged at $295.6 million, indicating 21.6% growth from the figure reported in the year-ago quarter.

Moreover, the consensus mark for earnings stands at 14 cents per share, unchanged over the past 30 days and from the figure reported in the year-ago quarter.

Over the trailing four quarters, Clarivate’s earnings beat the Zacks Consensus Estimate twice and missed in the remaining two, the average surprise being 322.2%.

Clarivate Analytics Plc Price and EPS Surprise

Clarivate Analytics Plc Price and EPS Surprise

Clarivate Analytics Plc price-eps-surprise | Clarivate Analytics Plc Quote

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

Factors to Consider

Clarivate is likely to have benefited from the coronavirus-led spike in online engagement, distance learning and increasing demand for digital sources of information.

Strong demand for open research and data analytics from the research-intensive universities and academic centers is expected to have continued in the to-be-reported quarter.

Additionally, recent acquisitions (over the past year), contract renewals and cost-saving initiatives combined with new product offerings against the backdrop of the global pandemic are likely to have driven growth.

The acquisition of Decisions Resources Group (DRG), to provide life science information with offerings across the entire life science value chain, is expected to have delivered cost synergy and enhanced revenues.

Further, the company partnered with IP Desk to offer an integrated trademark protection solution. This is expected to have added significant value to its vast product portfolio, which consists of information brands such as Cortellis, Derwent, CompuMark, MarkMonitor and Techstreet.

The company is expected to have experienced an increase in the subscriber base and higher retention due to better adoption across Cortellis suite.

Also, integration of Darts-ip with CompuMark is expected to have driven the top line and enhanced penetration in the third quarter.
Recently, Clarivate also launched its online Innovation Exchange, which is expected to have enabled life science, healthcare and research professionals to gain access to innovative software and data offerings from a wide range of approved partners, thereby expanding its list of offerings.

What Our Model Says

Per the Zacks model, 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. This is exactly the case here.

Clarivate has an Earnings ESP of +7.14% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

Alphabet GOOGL has an Earnings ESP of +7.40% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arrow Electronics ARW has an Earnings ESP of +3.93% and is Zacks #2 Ranked.

Apple AAPL has an Earnings ESP of +2.97% and is Zacks #3 Ranked.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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