Grid Dynamics (GDYN) reports earnings tomorrow: what to expect
Digital transformation consultancy Grid Dynamics (NASDAQ:GDYN) will be announcing earnings results this Thursday afternoon. Here’s what to expect.
Grid Dynamics beat analysts’ revenue expectations last quarter, reporting revenues of $108.2 million, up 7% year on year. It was a strong quarter for the company, with full-year revenue guidance beating analysts’ expectations and EPS in line with analysts’ estimates.
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 8.2% year on year, slowing from the 19.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 & other tech segment, some have already reported their Q3 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 4.7%, beating analysts’ expectations by 1.9%, and Accenture reported revenues up 6.2%, topping estimates by 3.5%. IBM’s stock price was unchanged after the resultswhile Accenture was up 8.5%.
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 & other tech segment, with share prices up 3.7% on average over the last month. Grid Dynamics is up 13.6% during the same time and is heading into earnings with an average analyst price target of $9.40 (compared to the current share price of $8.63).
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