MicroStrategy MSTR is slated to release its second-quarter 2023 results on Aug 1.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 71 cents per share, unchanged in the past 30 days. The projection indicates growth of 100.77% from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $124.7 million, suggesting an increase of 2.15% from the year-ago quarter’s reported figure.
MicroStrategy’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, with an earnings surprise of -536.93%, on average.
MicroStrategy Incorporated Price and EPS Surprise
MicroStrategy Incorporated price-eps-surprise | MicroStrategy Incorporated Quote
Let’s see how things are shaping up prior to this announcement.
Factors to Note
MicroStrategy’s second-quarter performance is likely to have benefited from the increased demand for its on-premise and cloud software solutions. Strength in its enterprise BI platform and an expanding clientele are likely to have driven its second quarter top line.
Its continuous product innovation and partnerships with hyperscalers have been noteworthy. MicroStrategy has been serving all major analytic needs of large enterprises with its MicroStrategy One platform that is likely to have driven its incremental cloud license opportunities in the to-be-reported quarter.
MicroStrategy has been transitioning toward a subscription-based revenue model, which is expected to have helped in establishing high-quality annual recurring revenues and scalability in the quarter to be reported.
The company’s bitcoin strategy is likely to have remained strong in the second quarter, thanks to a maturing digital asset environment and an improving regulatory environment in the crypto industry, creating a tailwind for Bitcoin.
MicroStrategy’s second-quarter top line is expected to have been affected by stiff competition and challenging macroeconomic environment. Also, persistent impairment charges are expected to have hurt margin performance in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here.
MicroStrategy has an Earnings ESP of +0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
onsemi ON has an Earnings ESP of +1.34% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
onsemi’s shares have returned 63.8% year to date. ON is set to report its second-quarter 2023 results on Jul 31.
Fair Isaac FICO has an Earnings ESP of +3.12% and a Zacks Rank of 3.
Fair Isaac’s shares have returned 37.1% year to date. FICO is set to report its third-quarter fiscal 2023 results on Aug 2.
Etsy ETSY has an Earnings ESP of +2.82% and a Zacks Rank of 3.
Etsy’s shares have declined 20% year to date. ETSY is set to report second-quarter 2023 results on Aug 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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