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Factors Setting the Tone for MobileIron's (MOBL) Q2 Earnings

MobileIron, Inc. MOBL is set to report second-quarter 2020 results on Jul 29.

The company expects revenues in the range of $49-52 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $49.9 million, which indicates a decline of 1.8% from the year-ago quarter’s reported figure.

The consensus mark for loss was unchanged at 3 cents in the past 30 days. Loss reported in the year-ago quarter was 4 cents.

Notably, the company missed earnings estimates in two of the preceding four quarters, beating estimates in one and meeting the same in the other. The company has a trailing four-quarter negative surprise of 26.8%, on average.

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

MobileIron, Inc. Price and EPS Surprise

MobileIron, Inc. Price and EPS Surprise

MobileIron, Inc. price-eps-surprise | MobileIron, Inc. Quote

Factors Likely to Have Influenced Q2

MobileIron’s second-quarter 2020 performance is expected to have benefited from strong demand for its robust Unified Endpoint Management (“UEM”) solution, which provides enterprise customers with end-to-end security across all devices including mobile.

Demand is being driven by the increase in cyber-attacks as hackers are taking advantage of the ongoing coronavirus pandemic to ramp up attacks on enterprises across all industries. Moreover, the surge in remote work trends has increased the need for end-to-end security as companies try to protect their sensitive data.

Along with the core UEM offering, increased upselling opportunities for the company’s MobileIron Threat Defense (“MTD”) and Access offerings to existing customers is a positive. MTD offers protection for android and iOS devices while Access enables password-less authentication by using mobile devices as the user ID.

These robust features are likely to have driven adoption of the offerings, which in turn is anticipated to have contributed to revenues during the quarter under review. Notably, in the first quarter, Ball Corporation expanded its deal with MobileIron to adopt both Access and MTD.

Additionally, growing momentum for the company’s offerings among healthcare institutions is likely to have boosted MobileIron’s second-quarter performance.

Markedly, a major Midwestern medical center adopted the company’s solutions in the first quarter to streamline the clinical communication workflows for its COVID-19 response center by allowing access to important medical data directly on iPhones. This trend is likely to have continued due to the rising number of COVID-19 infections globally, which has made it necessary for healthcare organizations to enhance their mobile infrastructure.

Nevertheless, the pandemic induced uncertainties still prevailing in the market are expected to have dampened performance in the to-be-reported quarter. Moreover, increased expenditure on portfolio expansion, by means of product innovation and acquisitions, is likely to have put pressure on second-quarter margins.

Key Development in Q2

MobileIron announced its acquisition of software provider –– incapptic Connect –– to help customers improve their productivity and innovation. Notably, incapptic Connect’s software will be integrated with MobileIron’s UEM platform to accelerate the process of developing, deploying and securing in-house business apps for enterprise customers.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for MobileIron 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. But that’s not the case here.

MobileIron 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 to Consider

Here are some stocks you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time:
    
Microchip Technology Incorporated MCHP has an Earnings ESP of +3.09% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Anaplan, Inc. PLAN has an Earnings ESP of +1.64% and a Zacks Rank of 1.

Synaptics Incorporated SYNA has an Earnings ESP of +10.60% and a Zacks Rank of 2.

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