Stock Story -
Accounting automation software maker Blackline (NASDAQ:BL) will be announcing earnings results tomorrow after the bell. Here's what investors should know.
BlackLine beat analysts' revenue expectations by 1.5% last quarter, reporting revenues of $157.5 million, up 13.3% year on year. It was a weak quarter for the company, with decelerating customer growth and a miss of analysts' billings estimates. It added 13 customers to reach a total of 4,411.
Is BlackLine a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting BlackLine's revenue to grow 9.4% year on year to $158.2 million, slowing from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 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. BlackLine has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 0.8% on average.
Looking at BlackLine's peers in the finance and HR software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Paylocity (NASDAQ:PCTY) delivered year-on-year revenue growth of 15.8%, beating analysts' expectations by 2.1%, and Paychex (NASDAQ:PAYX) reported revenues up 5.3%, in line with consensus estimates. Paylocity traded up 6.7% following the results while Paychex was down 5.7%.
Read the full analysis of Paylocity's and Paychex's results on StockStory.
Growth stocks have been quite volatile since the start of 2024, and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. BlackLine is down 6.6% during the same time and is heading into earnings with an average analyst price target of $59.7 (compared to the current share price of $45.57).
![BlackLine Earnings: What To Look For From BL](https://d68-invdn-com.investing.com/content/pic225f56e360d3d76771addb0263ce9b6c.jpeg)