Grid Dynamics
GDYN
is scheduled to report
first-quarter 2022
results on May 5.
The company expects first-quarter 2022 revenues between $55 million and $60 million.
The Zacks Consensus Estimate for revenues is currently pegged at $65.18 million, indicating an increase of 66.57% from the year-ago quarter.
The consensus mark for first-quarter earnings has been unchanged over the past 30 days at 5 cents per share, suggesting no year-over-year growth.
Grid Dynamics beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, with the average being 45.49%.
Grid Dynamics Holdings, Inc. Price and EPS Surprise
Grid Dynamics Holdings, Inc. price-eps-surprise
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Grid Dynamics Holdings, Inc. Quote
Factors to Note
Grid Dynamics has been banking on its strong partners to earn market share and increase revenue growth. The company has been strategically partnering with cloud providers like
Alphabet
’s
GOOGL
Google and
Amazon
AMZN
.
Grid Dynamics is expected to have attracted more customers via its partnership with Google Cloud Platform (GCP). Using the GCP, Grid Dynamics has been providing customers with new solutions to accelerate delivery at a reduced cost.
Grid Dynamics is available on Amazon marketplace and is expected to attract top-tier enterprise companies globally as the company is targeting to spread operations across various geographies. This is expected to have increased Grid Dynamics’ revenue sources.
GDYN’s top-line growth in the to-be-reported quarter is expected to have benefited from the recent expansion of delivery operations in India via its partnership with Sigma Infotech. The recent expansion of delivery operations in India is expected to have aided GDYN in meeting the rising demand for its services and tapping into a new market to gain more customers.
In the first quarter, GDYN is expected to have benefited from significant research & development (R&D) initiatives to improve accelerator offerings and scale up the company’s platform solutions to meet the growing demand from clients and win larger deals.
Yet, in the to-be-reported quarter, non-GAAP net income is expected to have declined due to rising operating costs in the form of higher research and development costs and employment expenses.
What Our Model Says
Per the Zacks model, the combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Grid Dynamics has an Earnings ESP of +11.11% and a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Another Stock to Consider
Here is another company worth considering, as our model shows that it has the right combination of elements to beat on earnings in its upcoming quarterly release:
BWX Technologies
BWXT
has an Earnings ESP of +2.29% and a Zacks Rank #2. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
BWX Technologies’ shares have returned 6% in the year-to-date period against the Zacks
Computer and Technology
sector’s decline of 21.8%.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
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