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What's in Store for Tableau Software (DATA) in Q4 Earnings?

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Tableau Software, Inc.DATA is set to release fourth-quarter 2016 results on Feb 2. Last quarter, the company delivered a negative earnings surprise of 14.29%. The company has delivered negative earnings surprises in each of the last four quarters, with an average miss of 162.69%.

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

Factors to Consider

Tableau Software is well placed to benefit from rising demand for business analytics tools. The company has been seeing strength in its offerings like the hybrid data architecture platform. The company has been taking a number of initiatives to boost its sales productivity and align its marketing efforts to drive growth. Also, there are lot of expectations from Tableau's new chief, Adam Selipskyas. In Sep 2016, Tableau named Selipskyas, a former executive at Amazon Web Service, its CEO and president. However, per mangement, the shift to a subscription-based revenue mix will impact results in the near term.

For the fourth quarter, the company expects revenues to be around $225 million to $235 million. Non-GAAP operating income is projected to be around $10 million to $18 million and non-GAAP loss per share is likely to be in a range of 9 to16 cents per share.

Tableau Software, Inc. Price and EPS Surprise

Tableau Software, Inc. Price and EPS Surprise | Tableau Software, Inc. Quote

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 (Strong Buy), 2 (Buy) or 3 (Hold) 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 37 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Tableau Software's Zacks Rank #3 increases the predictive power of ESP. However, 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 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:

Oclaro, Inc. OCLR with an Earnings ESP of +10.53% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Qorvo, Inc. QRVO with an Earnings ESP of +0.94% and a Zacks Rank #3.

Twilio Inc. TWLO with an Earnings ESP of +8.33% and a Zacks Rank #3

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Qorvo, Inc. (QRVO): Free Stock Analysis Report

Tableau Software, Inc. (DATA): Free Stock Analysis Report

Oclaro, Inc. (OCLR): Free Stock Analysis Report

Twilio Inc. (TWLO): 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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