ServiceNow
NOW
is scheduled to release third-quarter 2021 results on Oct 27.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $1.48 billion, which indicates growth of 28.3% from the figure reported in the year-ago quarter.
The consensus mark for
third-quarter earnings
has increased by a penny to $1.39 per share over the past 30 days, which indicates growth of 14.9% from the figure reported in the year-ago quarter.
Let’s see how things have shaped up for the upcoming announcement.
ServiceNow, Inc. Price and EPS Surprise
ServiceNow, Inc. price-eps-surprise
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ServiceNow, Inc. Quote
Factors at Play
ServiceNow’s third-quarter results are expected to have benefited from the strong adoption of its workflow solutions by enterprises amid the pandemic-induced accelerated digital transformation trend.
The quarterly performance is likely to have been driven by the company’s robust product portfolio and the Now Platform in the to-be-reported quarter.
ServiceNow estimates third-quarter non-GAAP adjusted subscription billings to lie between $1.32 billion and $1.325 billion (adjusted for constant currency), which indicates a jump of 23%, year over year.
The Zacks Consensus Estimate for subscription billings is currently pegged at $1.323 billion, which calls for an improvement of 22.4% from the figure reported in the year-ago quarter.
Top-line growth is expected to have benefited from ServiceNow’s expanding global presence, solid partner base and strategic buyouts in the to-be-reported quarter.
The company has been strengthening its portfolio offerings for the hybrid workforce through its expanded partnership with
Microsoft
MSFT
. In the third quarter, ServiceNow introduced a new collaborative app for its Employee Center that integrates with Microsoft Teams. The app helps in streamlining employee experiences in the hybrid work environment.
What Our Model Says
According to the Zacks model, the combination of a positive
Earnings ESP
and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ServiceNow has an Earnings ESP of +4.32% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Other Stocks to Consider
Here are a few other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
Alphabet
GOOGL
has an Earnings ESP of +7.71% and is Zacks #2 Ranked. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
CACI International
CACI
has an Earnings ESP of +4.43% and carries a Zacks Rank of 2, at present.
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