IT services provider Everforth (EFOR) will be reporting results this Wednesday after market hours. Here’s what to look for.
Everforth met analysts’ revenue expectations last quarter, reporting revenues of $968.3 million, flat year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EPS guidance for next quarter estimates.
Is Everforth a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Everforth’s revenue to decline 2.9% year on year, a further deceleration from the 1.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Everforth has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Everforth’s peers in the it services & other tech segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 1.1%, missing analysts’ expectations by 1.5%, and Accenture reported revenues up 5.6%, in line with consensus estimates. IBM’s stock price was unchanged after the resultsand Accenture’s price followed a similar reaction.
Read our full analysis of IBM’s results here and Accenture’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 3.2% on average over the last month. Everforth is up 15.7% during the same time and is heading into earnings with an average analyst price target of $27 (compared to the current share price of $21.65).
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