Monday.com (MNDY) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - The market anticipates that Monday.com (MNDY) will report a year-over-year decline in earnings despite higher revenues in its upcoming earnings report for the quarter ended June 2025 [1][3]. Earnings Expectations - The consensus estimate for Monday.com's quarterly earnings is $0.84 per share, reflecting a year-over-year decrease of 10.6% [3]. - Expected revenues for the quarter are $293.15 million, which represents a 24.2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - A positive Earnings ESP of +3.30% suggests that analysts have recently become more optimistic about Monday.com's earnings prospects [12]. Earnings Surprise Potential - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. - Monday.com currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Monday.com exceeded the expected earnings of $0.70 per share by delivering $1.10, resulting in a surprise of +57.14% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Industry Context - StoneCo Ltd. (STNE), another player in the Zacks Internet - Software industry, is expected to report earnings of $0.36 per share for the same quarter, indicating a year-over-year increase of 20% [18]. - StoneCo's revenues are projected to be $653.09 million, up 6.2% from the previous year [18]. - The consensus EPS estimate for StoneCo has been revised up by 5.9% over the last 30 days, and it has an Earnings ESP of +12.68%, suggesting a strong likelihood of beating the consensus EPS estimate [19].