Financial automation software company BlackLine (NASDAQ:BL) will be announcing earnings results this Tuesday after the bell. Here’s what to look for.
BlackLine met analysts’ revenue expectations last quarter, reporting revenues of $183.2 million, up 8.1% year on year. It was a satisfactory quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but EPS guidance for next quarter missing analysts’ expectations significantly. It lost -30 customers and ended up with a total of 4,394.
Is BlackLine a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting BlackLine’s revenue to grow 8.5% year on year, improving from the 6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BlackLine has a history of exceeding Wall Street’s expectations.
Looking at BlackLine’s peers in the finance and hr software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paychex delivered year-on-year revenue growth of 19.9%, beating analysts’ expectations by 1.5%, and Asure Software reported revenues up 22.7%, topping estimates by 2.1%. Paychex traded up 3.3% following the results while Asure Software was also up 1.1%.
Read our full analysis of Paychex’s results here and Asure Software’s results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 8.7% on average over the last month. BlackLine is down 6.3% during the same time and is heading into earnings with an average analyst price target of $50.69 (compared to the current share price of $33.89).
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