Online survey platform Momentive (NASDAQ:MNTV) will be reporting results tomorrow after market hours. Here's what you need to know.
Last quarter Momentive reported revenues of $122.4 million, up 4.3% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a meaningful improvement in gross margin but slow revenue growth. The company lost 10,100 customers and ended up with a total of 887,400.
Is Momentive buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Momentive's revenue to grow 1.68% year on year to $119 million, slowing down from the 14.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Momentive's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. VeriSign delivered top-line growth of 5.04% year on year, missing analyst estimates by 0.8% and Braze reported revenues up 40.1% year on year, exceeding estimates by 3.05%. Both companies (VeriSign and Braze) traded flat on the results. Read our full analysis of VeriSign's results here and Braze's results here.
There is still much uncertainty in the markets. The Federal Reserve's hawkish stance on rates, meant to tame inflation, remains a key market narrative. There is an added wrinkle now with troubles in the banking sector, trigger by Silicon Valley Bank's fairly sudden and surprising collapse. Given these, the question is whether higher rates (which dampen economic activity) and potentially less lending from the overall banking sector will trigger a recession. While some tech stocks have recovered year-to-date, most are still well off their 52-week highs. Momentive is up 0.43% over the last month and is heading into the earnings with analyst price target of $9.5, compared to share price of $9.39.
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The author has no position in any of the stocks mentioned.