Atlassian (TEAM) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Atlassian is expected to report a year-over-year increase in earnings and revenues, but the actual stock price movement will depend on how the results compare to consensus estimates [1] Earnings Expectations - The consensus estimate for Atlassian's quarterly earnings is $0.59 per share, reflecting a year-over-year change of +3.5% [2] - Revenues are projected to be $1.13 billion, which is an increase of 20.1% from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised down by 23.96% over the last 30 days, indicating a bearish sentiment among analysts [2] - The Most Accurate Estimate for Atlassian is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.86% [5][6] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [4] - Atlassian currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [5][6] Historical Performance - In the last reported quarter, Atlassian had an earnings surprise of +45.90%, beating the consensus estimate of $0.61 per share by reporting $0.89 [7] - The company has beaten consensus EPS estimates in each of the last four quarters [7] Market Context - The overall market reaction to earnings reports can be influenced by various factors beyond just the earnings beat or miss [8] - Other stocks in the software industry, such as Compass, are also reporting earnings, with different expectations and revisions impacting their outlooks [9]