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What's in Store for LivePerson (LPSN) This Earnings Season?

LivePerson LPSN is scheduled to announce report second-quarter 2020 numbers on Aug 4.

LivePerson projects quarterly revenues to lie between $83 million and $85 million (mid-point $84 million). The Zacks Consensus Estimate for revenues is pegged at $84 million, suggesting year-over-year growth of 18.4%.

The Zacks Consensus Estimate for the bottom line is pegged at a loss per share of 11 cents. However, the consensus mark calls for an improvement from the loss of 20 cents reported in the year-ago quarter.

Notably, the company’s bottom-line results have missed estimates in three of the last four quarters and surpassed in the other, the average negative surprise being 83.4%.

Let’s see how things have shaped up for the upcoming announcement.

LivePerson, Inc. Price and Consensus LivePerson, Inc. Price and Consensus

LivePerson, Inc. price-consensus-chart | LivePerson, Inc. Quote

Key Factors

LivePerson’s second-quarter performance is expected to have benefited from the rising demand for remote working and team collaboration tools amid the pandemic-induced lockdown.

The growing adoption of the company’s cloud-based solutions and massive digitalization of work from organizations, big or small, is likely to have aided its quarterly performance. Increasing demand for the firm’s cloud products from new customers as well as the existing clients using on-premises products is anticipated to have been another tailwind.

Also, healthy demand for its LiveEngage product from contact center businesses is likely to have been a key growth driver. Improvement in product quality and performance, multiple product launches and increased pricing are likely to have boosted quarterly revenues.

What Our Model Says

Our proven model predicts an earnings beat for LivePerson this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

LivePerson currently carries a Zacks Rank of 3 and has an Earnings ESP of +23.81%.

Other Stocks With Favorable Combinations

Here are some other companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Cogent Communications Holdings CCOI has an Earnings ESP of +11.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics SYNA has an Earnings ESP of +10.6 % and currently carries a Zacks Rank of 2.

Benefitfocus BNFT has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.

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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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