Digital transformation consultancy Grid Dynamics (NASDAQ:GDYN) will be reporting results this Thursday after market close. Here’s what to look for.
Grid Dynamics beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $100.4 million, up 25.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.
Is Grid Dynamics a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Grid Dynamics’s revenue to grow 21.1% year on year to $100.6 million, improving from the 7.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Grid Dynamics has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.2% on average.
Looking at Grid Dynamics’s peers in the it services & consulting segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Accenture delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 2.3%, and IBM reported revenues up 7.7%, topping estimates by 2.4%. Accenture traded down 3.6% following the results while IBM was also down 7.7%.
Read our full analysis of Accenture’s results here and IBM’s results here.
Investors in the it services & consulting segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Grid Dynamics is down 14.2% during the same time and is heading into earnings with an average analyst price target of $17.75 (compared to the current share price of $9.91).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.