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What's in the Cards for MobileIron (MOBL) in Q1 Earnings?

MobileIron Inc. MOBL is set to report first quarter 2016 results on Apr 28. Last quarter, the company posted a positive earnings surprise of 25%. Let's see how things are shaping up for this announcement.

Factors to Consider

MobileIron provides security and management solutions for mobile applications, contents and devices. The company offers software tools for device management, activity intelligence and security. Its offerings include multi-OS mobile device management software, mobile application management, wireless expense management, enterprise mobility, mobile device security and Bring-Your-Own-Device privacy controls, and MobileIron Virtual Smartphone Platform.

The company reported better-than-expected fourth-quarter 2015 results, wherein the top line beat the Zacks Consensus Estimate. Also, revenues compared favorably on a year-over-year basis. Though it reported a loss, it was narrower than expected.

Moreover, the deal with Apple Inc. AAPL to deploy iPad apps for enterprise customers will boost the top line in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively show that MobileIron is likely to beat estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass earnings estimates. However, that is not the case here due to the following factors:

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 23 cents per share. Hence, the difference is 0.00%.

Zacks Rank: MobileIron’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.

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

Stocks to Consider

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

  • Benefitfocus, Inc. BNFT, with an Earnings ESP of +4.00% and a Zacks Rank #2
  • Align Technology Inc. ALGN with an Earnings ESP of +12.82% and a Zacks Rank #2

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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
 
APPLE INC (AAPL): Free Stock Analysis Report
 
ALIGN TECH INC (ALGN): Free Stock Analysis Report
 
BENEFITFOCUS (BNFT): Free Stock Analysis Report
 
MOBILE IRON INC (MOBL): Free Stock Analysis Report
 
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