All posts from Zacks
Zacks in Our Research. Your Success.,

What's in the Cards for MINDBODY (MB) this Earnings Season?

MINDBODY, Inc. MB is scheduled to report first-quarter 2017 results on May 4. Last quarter, the company reported a narrower-than-expected loss, resulting in a positive surprise of 16.67%. Notably, the stock surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 19.06%.

Let us see how things are shaping up for this announcement.

Factors to Consider

MINDBODY develops cloud-based business management software and payments platform for the wellness services industry. The company provides its services to over 42,000 businesses in over 124 countries worldwide. With such a huge client base, the company is expected to post impressive earnings numbers in the first quarter.

Furthermore, significant investments in growth areas for improving implementation timelines, particularly for web and mobile applications products, will boost profitability. This is likely to be reflected in the to-be-reported quarterly results.

Nonetheless, the availability of various cheap alternatives such as Vagaro Pricing, iConnect360 Pricing and Zen Planner Pricing may adversely affect first-quarter results. Moreover, an uncertain economic condition remains a concern.

MINDBODY, Inc. Price and EPS Surprise


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

Earnings Whispers

Our proven model does not conclusively show that MINDBODY will beat the Zacks Consensus Estimate in its upcoming release. 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. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: The Earnings ESP for MINDBODY is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 10 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MINDBODY has a Zacks Rank #3. Though a Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

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 to Consider

Here are some companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:

EGain Corp. EGAN, with an Earnings ESP of +50.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vishay Intertechnology, Inc. VSH, with an Earnings ESP of +4.35% and a Zacks Rank #2.

Square Inc. SQ, with an Earnings ESP of +12.50% and a Zacks Rank #3.

5 Trades Could Profit ""Big-League"" from Trump Policies

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
eGain Corporation (EGAN): Free Stock Analysis Report
Square, Inc. (SQ): Free Stock Analysis Report
MINDBODY, Inc. (MB): Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research