Markets

What's in the Cards for MINDBODY (MB) this Earnings Season?

MINDBODY, Inc.MB is set to report fourth-quarter 2016 results on Feb 8. Last quarter, the company reported a narrower-than-expected loss, resulting in a positive surprise of 11.76%. Notably, the stock has surpassed the Zacks Consensus Estimate in the trailing four quarters with an average positive surprise of 16.74%.

Let us see how things are shaping up for this announcement.

Factors to Consider

MINDBODY develops cloud-based business management software and payments platform for the wellness services industry. The company provides its services to over 42,000 businesses in over 124 countries worldwide. With such a huge client base, the company is expected to post impressive earnings numbers in the fourth quarter.

Furthermore, significant investments in growth areas for improving implementation timelines, particularly for web and mobile applications products, will boost profitability. This is likely to be reflected in the company's to-be-reported quarterly results.

Nonetheless, the availability of various cheap alternatives such as Vagaro Pricing, iConnect360 Pricing and Zen Planner Pricing may have some negative impact on fourth-quarter results. Moreover, an uncertain economic condition is an additional worry.

Earnings Whispers

Our proven model does not conclusively show that MINDBODY is likely to beat the Zacks Consensus Estimate in its upcoming release. 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. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: The Earnings ESP for MINDBODY is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 12 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: MINDBODY has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company's ESP of 0.00% 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.

MINDBODY, Inc. Price and EPS Surprise

MINDBODY, Inc. Price and EPS Surprise | MINDBODY, Inc. Quote

Stocks to Consider

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

Pandora Media, Inc. P , with an Earnings ESP of +10.81% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .

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

CenturyLink, Inc. CTL , with an Earnings ESP of +1.79% and a Zacks Rank #3.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>

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

CenturyLink, Inc. (CTL): Free Stock Analysis Report

Pandora Media, Inc. (P): Free Stock Analysis Report

MINDBODY, Inc. (MB): Free Stock Analysis Report

Twilio Inc. (TWLO): 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

TWLO

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