AI lending platform Upstart (NASDAQ: UPST) will be reporting earnings this Tuesday after the bell. Here’s what to expect.
Upstart beat analysts’ revenue expectations last quarter, reporting revenues of $308.2 million, up 44.4% year on year. It was a slower quarter for the company, with full-year revenue guidance slightly missing analysts’ expectations.
Is Upstart 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 Upstart’s revenue to grow 38.3% year on year, slowing from the 102% increase 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. Upstart rarely misses Wall Street’s revenue estimates.
Looking at Upstart’s peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cadence Design Systems delivered year-on-year revenue growth of 24.2%, beating analysts’ expectations by 0.5%, and Procore Technologies reported revenues up 15.8%, topping estimates by 2.6%. Cadence Design Systems traded up 1.8% following the results while Procore Technologies was also up 7.2%.
Read our full analysis of Cadence Design Systems’s results here and Procore Technologies’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 2.7% on average over the last month. Upstart is down 20.8% during the same time and is heading into earnings with an average analyst price target of $39.80 (compared to the current share price of $27.12).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
