Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Q2 Holdings (QTWO) due to higher revenues, with actual results being crucial for stock price movement [1][2] Earnings Expectations - Q2 Holdings is expected to report earnings of $0.55 per share, reflecting a year-over-year increase of +96.4% [3] - Revenues are projected to be $197.46 million, up 12.8% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 1.05% lower in the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +2.75% suggests recent bullish sentiment among analysts, despite a Zacks Rank of 4 indicating a sell [12] Earnings Surprise History - In the last reported quarter, Q2 Holdings had an expected EPS of $0.51 but delivered $0.50, resulting in a surprise of -1.96% [13] - The company has only beaten consensus EPS estimates once in the last four quarters [14] Industry Context - In the Zacks Internet - Software industry, Spotify (SPOT) is expected to report earnings of $1.87 per share, a year-over-year change of +17.6% [18] - Spotify's revenue is anticipated to be $4.92 billion, up 12.3% from the previous year, but the consensus EPS estimate has been revised down by 5% [19]

Core Viewpoint - Q2 Holdings (QTWO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are a significant factor influencing stock prices [4][6]. - Rising earnings estimates for Q2 Holdings suggest an improvement in the company's underlying business, likely resulting in upward pressure on the stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [7]. - Stocks in the top 20% of Zacks-covered stocks, like Q2 Holdings with its Zacks Rank 2, are positioned for potential market-beating returns [10]. Earnings Estimate Revisions for Q2 Holdings - Q2 Holdings is projected to earn $2.22 per share for the fiscal year ending December 2025, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Q2 Holdings has increased by 36.1%, reflecting positive sentiment among analysts [8].

Company Performance - Q2 Holdings reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and up from $0.31 per share a year ago, representing an earnings surprise of 12.50% [1] - The company posted revenues of $189.74 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.73%, compared to year-ago revenues of $165.51 million [2] - Over the last four quarters, Q2 Holdings has surpassed consensus revenue estimates four times, but has only beaten consensus EPS estimates once [2] Stock Outlook - Q2 Holdings shares have declined approximately 21.2% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $191.56 million, and for the current fiscal year, it is $2.13 on revenues of $774.84 million [7] Industry Context - The Internet - Software industry, to which Q2 Holdings belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Q2 Holdings' stock performance [5]