EverCommerce Inc. (NASDAQ: EVCM) has confirmed the release date for its Q4 2021 earnings, which will be on Monday, March 14, 2022, after market close.
What to look for
Earnings: Stockearning’s Estimated EPS for Q4 2021 is expected to be $0.06. In the third quarter, the company missed the EPS estimate by 160%, posting EPS loss of $0.03 versus estimated EPS of $0.05. Historical EPS performance shows that the company has in the past 12 quarters beat estimates once (50%) and missed once (50%).
Revenue: In the fourth quarter, the company expects revenue to beat its guidance of $129.5 million to $131 million that it set in the third quarter. Adjusted EBITDA is expected to be between $27 million and $28 million. In the third quarter, the company had revenue of $128.5 million, representing a YoY increase from the year before. Pro forma revenue growth rate was 20% YoY in the third quarter and 21% YoY for the nine months ending September 30, 2021.
Stock movement: EVCM shares have lost 32.8% since the company released its last earnings release. Interestingly, following the earnings release, the company's shares have been UP once in the past two quarters. So, the historical price reaction suggests a 50% probability of the share price going UP following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-5%, while the predicted volatility on the seventh day is +/-0%.
What analysts are saying: Barclays analyst Ryan MacWilliams slashed his price target in the stock from $221 to $17 and maintained a Hold rating on the shares ahead of the fourth-quarter earnings release.
Deutsche Bank analyst Brad Zelnick slashed his price target on the stock from $23 to $18 and maintained a Buy rating on the stock. The analyst sees the software sector basics improving in 2022 while maintaining healthy regard for the market and macro environment. He believes the group "sets up well from here" but advises taking a more balanced strategy with more valuation awareness than in recent times.
JPMorgan analyst Sterling Auty lowered his price target on the stock from $30 to $26 and maintained a Buy rating on the shares. The analyst cut6 price targets in the software tech sector as part of the 2020 outlook.
Canaccord analyst David Hynes commenced coverage in the stock with a buy rating and a price target of $20. According to the analyst, EverCommerce is focused on integrating fragmented business administration solutions to meet the needs of small software companies that lack the administrative industry standards, functional expertise, and go-to-market skills needed to expand outside the single figures millions in revenue.
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