Endava PLC's Earnings Report: Understanding the Financial Outlook
Endava PLC's Earnings Performance Overview
Endava PLC (NYSE: DAVA) has recently released its quarterly earnings report, revealing earnings of $0.28 per share. Unfortunately, this fell short of market expectations, as analysts had predicted earnings of $0.29 per share. In a year-over-year comparison, this marks a significant decrease from earnings of $0.71 per share.
This recent earnings report indicates an earnings surprise of -3.45%. In the previous quarter, the company had anticipated posting $0.23 per share but surprisingly exceeded this by earning $0.28 per share instead, resulting in a positive earnings surprise of 21.74%.
Over the last year, Endava has managed to exceed earnings expectations two times out of four quarters. This consistent performance reflects the volatile nature of the current market.
Revenue Insights
For the quarter ending in June, Endava reported revenues totaling $245.3 million. This unfortunately did not meet the consensus estimate, missing by approximately 1.35%. In comparison, the company had earned $237.56 million in revenues during the same period last year, displaying modest growth yet falling short of expectations.
Throughout the previous four quarters, Endava surpassed revenue expectations on two occasions. The ability to meet or exceed these revenue estimates is critical for investor confidence and the stock's future trajectories.
Market Performance and Comparison
Despite the company’s best efforts, Endava shares have experienced a drastic decline of approximately 62.9% since the beginning of this year. In contrast, the broader market, represented by the S&P 500, has increased by 17.8% in the same timeframe. This stark comparison highlights the challenges faced by the company in the current economic climate.
Looking Ahead: What's Next for Endava PLC?
With the underperformance thus far, investors are left pondering the next steps for Endava's stock. While there are no straightforward answers to this question, one helpful metric is the company's earnings outlook. This involves understanding upcoming consensus earnings expectations and observing shifts in these expectations over time.
Research indicates a strong correlation between nearby stock movements and changes in earnings estimate revisions. Investors can monitor these revisions or utilize established rating tools to gain insights into potential future performance. Currently, Endava holds a Zacks Rank of #3, categorized as 'Hold', suggesting that shares may perform in line with the overall market shortly.
Future Earnings Estimates
As we move forward, the upcoming expectations for Endava's earnings are crucial. The present consensus estimates forecast earnings of $0.38 per share with projected revenues of $257.42 million for the forthcoming quarter. Moreover, for the ongoing fiscal year, the estimates are $1.60 per share on total revenues of $1.06 billion.
Industry Insights and Comparisons
The industry's general outlook also holds significant weight in assessing Endava's performance. As per the Zacks Industry Rank, the Computers - IT Services sector is currently positioned within the top 20% of over 250 Zacks industries. Analyzing these trends is imperative, as industries ranked in the top half consistently outperform those in the lower half by a 2 to 1 margin.
In the same industry, Accenture (NYSE: ACN) is also on the brink of reporting its latest quarterly results, expected later this month. Accenture anticipates quarterly earnings of $2.77 per share, reflecting an increase of 2.2% year-over-year. Its projected revenues are estimated at $16.33 billion, also indicating a 2.2% growth from the previous year.
Frequently Asked Questions
What did Endava report for its earnings per share?
Endava reported earnings of $0.28 per share, which was below expectations.
How did Endava's earnings compare year-over-year?
The earnings dropped from $0.71 per share from the previous year.
What is the current Zacks Rank for Endava?
Endava currently holds a Zacks Rank of #3, indicating a 'Hold' rating.
What were Endava's revenues for the last quarter?
Endava's revenues were reported at $245.3 million for the last quarter.
How has Endava's stock performed this year?
Endava's stock has lost about 62.9% of its value since the start of the year.
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