Automation software company UiPath (NYSE:PATH) will be reporting earnings tomorrow afternoon. Here’s what to look for.
UiPath beat analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $316.3 million, up 10.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
Is UiPath a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting UiPath’s revenue to grow 6.7% year on year to $347.7 million, slowing from the 24% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. UiPath has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.5% on average.
Looking at UiPath’s peers in the automation software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 1.6%, and Appian reported revenues up 12.4%, topping estimates by 1.3%. Microsoft traded down 6.3% following the results while Appian’s stock price was unchanged.
Read our full analysis of Microsoft’s results here and Appian’s results here.
There has been positive sentiment among investors in the automation software segment, with share prices up 16.8% on average over the last month. UiPath is up 16% during the same time and is heading into earnings with an average analyst price target of $15.47 (compared to the current share price of $14.55).
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