Markets

Is a Surprise in Store for Five9 (FIVN) this Q4 Earnings?

Five9 Inc.FIVN is set to report fourth-quarter fiscal 2016 results on Feb 16. Last quarter, the company posted a positive earnings surprise of 50%. Let us see how things are shaping up for this announcement.

Factors at Play

Five9 offers a virtual contact center cloud platform that acts as a hub for interaction between clients and customers. This facilitates contact center operations focused on inbound or outbound customer interactions within a single unified architecture. The company offers software products such as workforce management, speech recognition, predictive dialer and voice applications.

The cloud-based contact center solution industry has been witnessing growth over the past several quarters as organizations are looking for ways to minimize costs and improve customer support. We believe that Five9 has been capitalizing on this opportunity, which should reflect in its to-be-reported quarter.

Moreover, the company's sustained focus on expanding its product portfolio will aid its top-line performance.

However, intensifying competition from small and large players like Cisco Systems CSCO is likely to dent Five9's fourth-quarter performance.

Five9, Inc. Price and EPS Surprise

Five9, Inc. Price and EPS Surprise | Five9, Inc. Quote

Earnings Whispers

Our proven model does not conclusively show that Five9 will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Earnings ESP for Five9 is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 8 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Although Five9's Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Century Communities, Inc. CCS , with an Earnings ESP of +14.93% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

FirstEnergy Corp. FE , with an Earnings ESP of +2.56% and a Zacks Rank #3.

Zacks' Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

FirstEnergy Corporation (FE): Free Stock Analysis Report

Cisco Systems, Inc. (CSCO): Free Stock Analysis Report

Century Communities, Inc. (CCS): Free Stock Analysis Report

Five9, Inc. (FIVN): Free Stock Analysis Report

To read this article on Zacks.com click here.

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


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

In This Story

FIVN FE CSCO CCS

Other Topics

Earnings Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More