Markets

Tableau Software (DATA) Q3 Earnings: What's in the Cards?

Tableau Software, Inc.DATA is set to release third-quarter 2015 results on Nov 5. Last quarter, the company delivered a negative earnings surprise of 145.45%. Overall, the company has delivered positive earnings surprises in the three of the last four quarters, with an average beat of 336.56%.

Let's see how things are shaping up for this announcement.

Factors to Consider

The company has been benefiting from the rising demand for business analytics tools. It caters to various organizations, including small and medium-sized businesses, government agencies, Fortune 500 corporations, research institutions and non-profits organization and boasts more than 21,000 customer accounts across 100 countries.

Tableau currently targets growth in the international market, as is evident from the fact that a substantial part of its revenues is generated from business outside the U.S. and Canada. In August, the company had launched its operations in China which can be a key growth driver.

Recently, Tableau Software partnered with companies like PostUp, Deloitte and NetSuite for providing analytics solutions.

However, an increase in operating expenses due to higher research and development, and general and administrative expenses associated with the expansion initiatives undertaken by the company is a near-term threat to margins. Further, competition from giant players such as IBM Corp. IBM and Oracle Corp. ORCL pose a significant threat.

This analytics and data visualization software company had reported mixed results last quarter with earnings lagging expectations but revenues surpassing the estimates.

Earnings Whispers

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

Zacks ESP: Tableau Software has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 13 cents.

Zacks Rank: Though Tableau's Zacks Rank #3 (Hold) increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.

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

Stock to Consider

Here is another company that you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter:

Popeyes Louisiana Kitchen, Inc. PLKI , with an Earnings ESP of +2.27% and a Zacks Rank #1 (Strong Buy)

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 >>

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

TABLEAU SOFTWAR (DATA): Free Stock Analysis Report

INTL BUS MACH (IBM): Free Stock Analysis Report

ORACLE CORP (ORCL): Free Stock Analysis Report

POPEYES LA KTCH (PLKI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

ORCL IBM

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