Alithya Group (ALYA) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release

Core Viewpoint - The market anticipates Alithya Group (ALYA) to report flat earnings with lower revenues for the quarter ended December 2023, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Alithya is expected to post a quarterly loss of $0.04 per share, unchanged from the previous year [2]. - Revenues are projected to be $87.83 million, reflecting an 8.8% decline from the year-ago quarter [2]. Estimate Revisions - The consensus EPS estimate has been revised 35% lower in the last 30 days, indicating a bearish sentiment among analysts [2]. - The Most Accurate Estimate for Alithya is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -71.43% [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from consensus estimates, with significant predictive power for positive readings only [3][4]. - Alithya currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, Alithya was expected to incur a loss of $0.02 per share but achieved break-even earnings, resulting in a surprise of +100% [7]. - Over the past four quarters, Alithya has beaten consensus EPS estimates three times [7]. Conclusion - Alithya does not appear to be a compelling candidate for an earnings beat based on current estimates and revisions, but other factors should also be considered by investors [8].