LivePerson Reports Wider Loss than Expected: Analyzing Future Prospects
LivePerson (LPSN) reported a quarterly loss of $0.07 per share, which was worse than the Zacks Consensus Estimate of a $0.05 loss. This loss is a significant change from earnings of $0.03 per share during the same period last year, with adjustments made for one-time items.
This latest report reflects an earnings surprise of -40%. In the previous quarter, analysts had predicted a loss of $0.07 per share, but the actual result was a more considerable loss of $0.69, leading to a staggering surprise of -885.71%.
Over the past year, LivePerson has consistently missed consensus EPS estimates.
In the recent quarter ending September 2024, LivePerson generated revenues of $74.24 million, which surpassed the Zacks Consensus Estimate by 3.76%. However, this figure is down from last year’s revenues of $101.33 million. Notably, the company has met or exceeded revenue estimates three times in the past four quarters.
The future performance of the stock will largely depend on the management’s insights shared during the earnings call regarding these financial results and expectations for upcoming earnings.
Since the beginning of the year, LivePerson shares have dropped approximately 69.1%, contrasting sharply with the S&P 500’s increase of 24.3%.
Future Directions for LivePerson
Despite underperforming in 2024, investors are left to ponder the future of LivePerson’s stock. A key factor in understanding the stock’s trajectory is the company’s earnings outlook, which includes current consensus expectations and any recent changes to those forecasts.
Research highlights a strong link between short-term stock movements and shifts in earnings estimate revisions. Investors have the option to track these changes or utilize established tools like the Zacks Rank, known for effectively predicting stock movements based on earnings estimates.
Leading up to this earnings release, the forecast for LivePerson was mixed. Although the direction of these revisions may shift after the earnings report, the stock currently holds a Zacks Rank of #3 (Hold), suggesting it may perform similarly to the market in the near term. For those interested, the complete list of today’s Zacks #1 Rank (Strong Buy) stocks is available.
It will be intriguing to monitor how estimates change for the upcoming quarters and the current fiscal year. Presently, the consensus EPS estimate for the next quarter is a breakeven on $72.6 million in revenues, while the estimate for the current fiscal year is -$0.15 on $309.18 million in revenues.
Investors should also consider that the industry’s outlook can significantly influence a stock’s performance. Currently, the Internet – Services sector ranks in the top 26% among over 250 Zacks industries. Historical data reveals that the upper half of Zacks-ranked industries significantly outpace those in the lower half.
In the broader Zacks Computer and Technology sector, SentinelOne (S) has yet to release results for the quarter ending October 2024. This cybersecurity firm is projected to report quarterly earnings of $0.01 per share, a growth of +133.3% year-over-year. Additionally, the consensus EPS estimate has remained steady over the past month.
Projected revenues for SentinelOne stand at $209.56 million, representing a 27.7% increase from the corresponding quarter last year.
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LivePerson, Inc. (LPSN): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
