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What to Expect from Five9 (FIVN) This Earnings Season? - Analyst Blog

Five9 Inc.FIVN is set to report second-quarter 2015 results on Aug 3. Last quarter, the company posted a positive earnings surprise of 23.81%. Further, it is worth noting that Equinix has outperformed the Zacks Consensus Estimate in the last four quarters with an average positive earnings surprise of 16.77%.

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

Factors at Play

Five9 offers virtual contact center cloud platform that acts as the hub for interaction between its clients and their customers. This facilitates contact center operations focused on inbound or outbound customer interactions in 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 is 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 will be reflected in its to-be-reported quarter results.

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

However, intensifying competition from small and large players, such as Cisco Systems CSCO , is likely to affect the company's second-quarter performance.

Earnings Whispers

Our proven model does not conclusively show that Five9 is likely to beat earnings estimates 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. This is not the case here, as you will see below.

Zacks ESP: ESP for Five9 is 0.00% since the Most Accurate estimate of a loss of 20 cents per share is in line with the Zacks Consensus Estimate.

Zacks Rank: Five9's Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.

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

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:

SunEdison Inc. SUNE , with an Earnings ESP of +8.89% and a Zacks Rank #3.

Amtech Systems Inc. ASYS , with an Earnings ESP of +8.00% and a Zacks Rank #3.

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FIVE9 INC (FIVN): Free Stock Analysis Report

CISCO SYSTEMS (CSCO): Free Stock Analysis Report

AMTEC SYSTEMS (ASYS): Free Stock Analysis Report

SUNEDISON INC (SUNE): Free Stock Analysis Report

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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.


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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