Accounting automation software maker Blackline (NASDAQ: BL) will be reporting results tomorrow after the bell. Here’s what investors should know.
BlackLine beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $169.5 million, up 8.8% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations. It added 10 customers to reach a total of 4,443.
Is BlackLine a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting BlackLine’s revenue to grow 5.9% year on year to $166.7 million, slowing from the 13.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 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. BlackLine has missed Wall Street’s revenue estimates twice over the last two years.
Looking at BlackLine’s peers in the finance and hr software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paylocity delivered year-on-year revenue growth of 13.3%, beating analysts’ expectations by 2.9%, and Paychex reported revenues up 4.8%, in line with consensus estimates. Paylocity traded down 3.6% following the results while Paychex was up 5.4%.
Read our full analysis of Paylocity’s results here and Paychex’s results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 14.1% on average over the last month. BlackLine is up 9.7% during the same time and is heading into earnings with an average analyst price target of $55.55 (compared to the current share price of $46.99).
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