IT project management software company, Atlassian (NASDAQ:TEAM) will be reporting results tomorrow after market close. Here’s what to look for.
Atlassian beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $1.19 billion, up 21.5% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
Is Atlassian a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Atlassian’s revenue to grow 16.9% year on year to $1.24 billion, slowing from the 21.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Atlassian has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.9% on average.
With Atlassian being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for productivity software stocks. However, there has been positive investor sentiment in the segment, with share prices up 8.8% on average over the last month. Atlassian is up 12% during the same time and is heading into earnings with an average analyst price target of $290.55 (compared to the current share price of $276.02).
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