Alarm.com Holdings, Inc. ALRM is slated to report second-quarter 2015 results on Aug 6. Let's see how things are shaping up for this announcement.
Factors to Consider
Alarm.com, a cloud-based home automation and security platform provider, started trading on the NASDAQ on Jun 26. The company priced its shares at $14 in its IPO, and its stock soared nearly 26% in early trading.
The company develops solutions for connected homes, broadly accessible to millions of home and business owners. The technology helps users secure their properties and automate and control a wide range of connected devices through a single, intuitive user interface. These solutions are provided through a network of service providers, who are experts at designing, selling, installing and supporting Alarm.com solutions.
The company has a differentiated product portfolio and broad dealer network. Also the company is working toward gaining new service provider relationships, product innovation and international growth. Therefore, this will help the company to penetrate and gain share in the home automation and security market. This will also help the company to increase its customers, thereby driving results.
Earnings Whispers?
Our proven model does not conclusively show that Alarm.com will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents. Hence, the difference is 0.00%.
Zacks Rank: Alarm.com’s Zacks Rank #3 (Hold) when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies, which you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Jack Henry & Associates Inc. JKHY, with Earnings ESP of +4.55% and a Zacks Rank #3
SunEdison, Inc. SUNE, with Earnings ESP of +13.33% and a Zacks Rank #3
Amtech Systems Inc. ASYS, with Earnings ESP of +8.00% and a Zacks Rank #3
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