Atlassian (US:TEAM) Zacks Investment Research·2024-04-11 14:06Core Viewpoint - Atlassian's stock has recently been trending due to changes in earnings estimates and market performance, with a current Zacks Rank of 4 (Sell) indicating potential underperformance in the near term [1][9]. Earnings Estimate Revisions - Atlassian is expected to report earnings of $0.61 per share for the current quarter, reflecting a year-over-year increase of +13%, with a recent consensus estimate change of +3.6% [2]. - For the current fiscal year, the consensus earnings estimate is $2.57, indicating a +33.9% change from the previous year, with a +1.4% change over the last 30 days [3]. - The next fiscal year's consensus earnings estimate is $3.11, showing a +21.3% change from the prior year, with a +0.3% change in the last month [3]. Projected Revenue Growth - The consensus sales estimate for the current quarter is $1.1 billion, representing a year-over-year increase of +19.7% [4]. - For the current fiscal year, the revenue estimate is $4.23 billion, indicating a +19.8% change, while the next fiscal year's estimate is $5.07 billion, reflecting a +19.7% change [4]. Last Reported Results and Surprise History - In the last reported quarter, Atlassian generated revenues of $1.06 billion, a +21.5% year-over-year increase, and an EPS of $0.73 compared to $0.45 a year ago [5]. - The reported revenues exceeded the Zacks Consensus Estimate of $1.02 billion by +4.03%, and the EPS surprise was +17.74% [5][6]. - The company has consistently beaten consensus EPS and revenue estimates over the last four quarters [6]. Valuation - Atlassian's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing whether the stock is fairly valued [7]. - The Zacks Value Style Score indicates that Atlassian is graded F, suggesting it is trading at a premium compared to its peers [8].