Anaplan (PLAN) to Report Q3 Earnings: What's in the Cards?

Anaplan PLAN is set to report third-quarter fiscal 2020 results on Nov 21.

For the quarter, the Zacks Consensus Estimate for loss has been steady at 13 cents per share over the past 30 days.

Anaplan expects third-quarter revenues between $85.5 million and $86.5 million. The consensus mark for revenues currently stands at $86.4 million, suggesting growth of 39.3% from the figure reported in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate over the trailing four quarters, the average positive surprise being 21.7%.

Anaplan, Inc. Price and EPS Surprise

Anaplan, Inc. Price and EPS Surprise

Anaplan, Inc. price-eps-surprise | Anaplan, Inc. Quote

 

Let’s see how things are shaping up for this announcement.

Key Factors to Consider

Anaplan’s expanding user base is expected to have benefited its third-quarter performance. Solid demand for the company’s Connected Planning solution, owing to the ongoing digital transformation among global enterprises, is expected to have aided the dollar-based network expansion rate, which was 121% in the last reported quarter.

Notably, at the end of the second quarter, the company was serving 300 customers with more than $250K in annual recurring revenues, which reflected impressive year-over-year growth of 40%.

The momentum most likely continued in the to-be-reported quarter driven by expanding use cases of Anaplan’s solutions in adjacent business areas like the supply chain. Moreover, a broadening partner ecosystem that includes Bain, VCG, McKinsey, A.T. Kearney and Oliver Wyman has been a key catalyst.

During the second quarter, the company inked 41 deals with Deloitte, Anaplan’s Global Partner of 2019. The company also announced a collaboration with Ernst & Young focusing on planning functions in the financial services, health, life sciences, and consumer products industries.

The expanding partner base is expected to have boosted Anaplan’s go-to-market process. Management had stated during the second-quarter earnings call that the number of partner transactions closed has been on the rise in each quarter and the deal sizes have been expanding as well.

Moreover, an expanding partner base has helped Anaplan penetrate international markets like EMEA and Japan.

What Our Model Says

According to the Zacks model, a company with a positive Earnings ESP along with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates.

Anaplan carries a Zacks Rank #3 and an Earnings ESP of -2.63%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are three stocks you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat this season.

Adobe Systems ADBE has an Earnings ESP of +0.12% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Okta OKTA has an Earnings ESP of +1.82% and a Zacks Rank #3.

Momo MOMO has an Earnings ESP of +3.94% and a Zacks Rank #3.

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