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eGain (EGAN) to Report Q4 Earnings: What's in the Cards?

Zacks Equity Research

eGain Corporation EGAN is set to release fourth-quarter fiscal 2019 results on Sep 3.

Notably, the company beat the Zacks Consensus Estimate in two of the trailing four quarters, the average positive surprise being 266.7%.

In the last reported quarter, it posted non-GAAP earnings of 6 cents compared with 2 cents in the year-ago quarter.

Revenues rose 8% year over year to $17 million and were in line with the Zacks Consensus Estimate.

The Zacks Consensus Estimate for earnings has stayed flat at 4 cents over the past 30 days. The consensus mark for revenues is pegged at $17.4 million, implying growth of 11.5% from the figure reported in the year-ago quarter.

eGain Corporation Price and EPS Surprise

 

eGain Corporation Price and EPS Surprise

eGain Corporation price-eps-surprise | eGain Corporation Quote

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

Factors to Watch

eGain benefits from continuing migration of legacy on-premise customers to cloud. SaaS revenues rose 31% year over year to $11.8 million in third-quarter fiscal 2019.

Additionally, the company’s focus to penetrate the mid-market is noteworthy. Moreover, eGain’s customer engagement solutions are witnessing an increase in adoption. The company’s virtual assistants (chatbots), messaging, social and AI solutions are likely to majorly drive new bookings in the fiscal fourth quarter.

Further, eGain’s strong partner base, which includes the likes of Cisco, Avaya and Amazon Connect, is a key catalyst in driving bookings. The company continues to win customers on a regular basis that bodes well for SaaS revenues.

However, higher expenses due to customer event in London and increased marketing spending are expected to hurt its profitability in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, a company, with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP, has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

eGain currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Smartsheet SMAR has an Earnings ESP of +11.11% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Verint Systems VRNT currently has an Earnings ESP of +3.49% and a Zacks Rank #3.

Oracle ORCL presently has an Earnings ESP of +0.10% and a Zacks Rank #3.

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eGain Corporation (EGAN) : Free Stock Analysis Report
 
Verint Systems Inc. (VRNT) : Free Stock Analysis Report
 
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Smartsheet Inc. (SMAR) : Free Stock Analysis Report
 
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