Digital transformation consultancy Grid Dynamics (NASDAQ: GDYN) will be reporting results this Thursday after market hours. Here’s what to look for.
Grid Dynamics met analysts’ revenue expectations last quarter, reporting revenues of $106.2 million, up 5.9% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and full-year revenue guidance meeting analysts’ expectations.
Is Grid Dynamics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Grid Dynamics’s revenue to grow 2.8% year on year, slowing from the 25.8% increase it recorded in the same quarter last year.
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. Grid Dynamics has a history of exceeding Wall Street’s expectations.
Looking at Grid Dynamics’s peers in the it services & consulting segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.4%, and Accenture reported revenues up 8.3%, topping estimates by 0.8%. IBM traded down 8.3% following the results while Accenture was up 2.5%.
Read our full analysis of IBM’s results here and Accenture’s results here.
There has been positive sentiment among investors in the it services & consulting segment, with share prices up 13.1% on average over the last month. Grid Dynamics is down 1.8% during the same time and is heading into earnings with an average analyst price target of $10.10 (compared to the current share price of $5.58).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
