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

LivePerson LPSN is scheduled to report third-quarter 2020 numbers on Oct 29.

LivePerson projects quarterly revenues to lie between $92 million and $93 million (mid-point $92.5 million). The Zacks Consensus Estimate for revenues is pegged at $92.6 million, suggesting year-over-year growth of 23.1%.

The Zacks Consensus Estimate for the bottom line is pegged at a loss per share of 6 cents. However, the consensus mark calls for an improvement from the loss of 22 cents reported in the year-ago quarter.

Notably, the company’s bottom-line results have missed estimates in two of the last four quarters and surpassed in the other two occasions, the average negative surprise being 42.5%.

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

Key Factors

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

LivePerson, Inc. Price and Consensus

LivePerson, Inc. Price and Consensus

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

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 expected to have boosted quarterly revenues.

What Our Model Says

Our proven model does not predict an earnings beat for LivePerson this time around. 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. But that’s not the case here. 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 2 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Vishay Intertechnology, Inc. VSH has an Earnings ESP of +6.45% and flaunts a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alphabet GOOGL has an Earnings ESP of +7.40% and carries a Zacks Rank of 2, currently.

AMETEK, Inc. AME has an Earnings ESP of +0.83% and currently carries a Zacks Rank of 3.

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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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