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MobileIron (MOBL) Q2 Earnings: Can it Pull Off a Surprise?

MobileIron, Inc. MOBL is set to report second-quarter 2017 results on Jul 27. Notably, the company has beaten the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 16.37%.

Last quarter, including stock-based compensation, the company reported a loss of 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents.

Revenues of $42.3 million were slightly above the midpoint of the company’s guided range of $41–$43 million and increased 11% from the year-ago quarter. The figure was in-line with the Zacks Consensus Estimate. Billings were $45.4 million, above the midpoint of the company’s guided range of $44 – $46 million and grew 19% on a year-over-year basis.

Management expects gross billings for the second-quarter to be in the range of $47–$49 million, up 14% to 19% year over year. At the midpoint, the growth is estimated to be approximately 16%. The company projects revenues in the range of $42.5–$44.5 million, up 9% to 14% year over year.

MobileIron stock has gained 58.6% year to date, outperforming the 20.2% rally of the industry it belongs to.



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

Factors at Play

MobileIron is well poised to grow in the Enterprise Mobile Management (EMM), Cloud Security, Desktop Security and the Internet of Things market based on its expanding product portfolio. In the latest report "Magic Quadrant for Enterprise Mobility Management Suites", market research firm Gartner put MobileIron in the “Leader” quadrant for the seventh consecutive year, which shows strong growth potential for the company in this segment.

We note that demand for the company’s cloud security solutions is quite strong among U.S. wireless carriers like Verizon VZ and T-Mobile, which is likely to boost top-line growth. Management stated that MobileIron is the preferred internal vendor for the three largest wireless carriers in the U.S.

The company’s products like MobileIron Access and MobileIron Cloud enjoy steady demand from governments and other high-end customers like National Institute of Standards and Technology, U.S. Department of Agriculture, United States Mint and Swedish tax authority.

We also note that the company’s MobileAccess platform has been integrated into Concur, Tableau, Workday, Facebook and DropBox. The growing customer base and frequent contract wins remain tailwinds.

Moreover, increasing demand from emerging markets (Middle East, Russia, Latin America) is also evident from the fact that the company has added more than 1,000 customers over the last few quarters.

Notably, partnership with Lenovo in the first quarter is also helping MobileIron to expand its footprint in the desktop security market.

MobileIron, Inc. Price and EPS Surprise

MobileIron, Inc. Price and EPS Surprise | MobileIron, Inc. Quote

 

Earnings Whispers

Our proven model does not conclusively show that MobileIron is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: MobileIron’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and Zacks Consensus Estimate stand at a loss of 16 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter

Zacks Rank: MobileIron’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are a few companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming release:

IPG Photonics Corporation IPGP with an Earnings ESP of +3.07% and Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kemet Corporation KEM with an Earnings ESP of +11.11% and a Zacks Rank #1.

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MobileIron, Inc. (MOBL): Free Stock Analysis Report
 
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