In its upcoming report, Atlassian (TEAM) is predicted by Wall Street analysts to post quarterly earnings of $0.83 per share, reflecting an increase of 7.8% compared to the same period last year. Revenues are forecasted to be $1.4 billion, representing a year-over-year increase of 17.8%.
Over the last 30 days, there has been a downward revision of 7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Given this perspective, it's time to examine the average forecasts of specific Atlassian metrics that are routinely monitored and predicted by Wall Street analysts.
The average prediction of analysts places 'Revenues- Subscription' at $1.33 billion. The estimate suggests a change of +17.9% year over year.
The combined assessment of analysts suggests that 'Revenues- Other' will likely reach $63.95 million. The estimate indicates a year-over-year change of +14.5%.
Analysts forecast 'Revenues- Cloud' to reach $970.17 million. The estimate indicates a year-over-year change of +22.5%.
Analysts expect 'Revenues- Data Center' to come in at $362.24 million. The estimate indicates a year-over-year change of +7.9%.
The consensus estimate for 'Revenues- Marketplace and other' stands at $66.77 million. The estimate indicates a change of +11.5% from the prior-year quarter.
Analysts predict that the 'Customers' will reach 312,289 . The estimate compares to the year-ago value of 300,000 .
View all Key Company Metrics for Atlassian here>>>
Over the past month, shares of Atlassian have returned +2.7% versus the Zacks S&P 500 composite's +3.8% change. Currently, TEAM carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Atlassian Corporation PLC (TEAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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