Stock Story -
IT project management software company, Atlassian (NASDAQ:TEAM) will be reporting results tomorrow after the bell. Here's what you need to know.
Atlassian beat analysts' revenue expectations by 8.1% last quarter, reporting revenues of $1.19 billion, up 29.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts' billings estimates and solid sales guidance for the next quarter.
Is Atlassian a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Atlassian's revenue to grow 20.3% year on year to $1.13 billion, slowing from the 23.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Atlassian has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.1% on average.
Looking at Atlassian's peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ServiceNow (NYSE:NOW) delivered year-on-year revenue growth of 22.2%, meeting analysts' expectations, and Pegasystems (NASDAQ:PEGA) reported revenues up 17.7%, topping estimates by 8.1%. ServiceNow traded up 13.2% following the results while Pegasystems was also up 12.7%.
Read the full analysis of ServiceNow's and Pegasystems's results on StockStory.
There has been positive sentiment among investors in the productivity software segment, with share prices up 2.2% on average over the last month. Atlassian is down 5.2% during the same time and is heading into earnings with an average analyst price target of $238.3 (compared to the current share price of $172.81).
![Atlassian (TEAM) Reports Earnings Tomorrow: What To Expect](https://d68-invdn-com.investing.com/content/pic36062ad333166b5d8692366a38e1d53d.jpeg)