J2 Global, Inc. (NasdaqGS:JCOM) is scheduled to report Q3 earnings results on November 2, 2020.
The company is expected to report earnings of $1.76/share on revenue of $338.6 million. The consensus earnings per share (EPS) of $1.76/share is based on a poll of 12 analysts and represents a growth in eps of 3.7% over the same quarter last year, when the company reported earnings of $1.70/share.
The revenue forecast of $338.6 million based on a poll of 11 analysts implies a year-over-year (YoY) decline in revenue of −1.6%. Last year the company reported $344.1 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters and met expectations 1 quarter.
What are your expectations from J2 Global, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 12.5%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 10, 2020||$61.37||$69.03||12.5%||Increase|
|May 11, 2020||$81.60||$72.11||−11.6%||Decline|
|February 10, 2020||$98.59||$95.71||−2.9%||Decline|
|October 31, 2019||$95.26||$94.41||−0.9%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.88, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.88 implies a 0.2% chance of earnings manipulation.
Fundamentals And Technical Analysis
J2 Global, Inc. is currently trading at $69.24/share, down −1.3% for the day. The company is trading at approximately 66.2% of its 52-week high of $104.57/share. The company’s stock price is up 0.3% since the last earnings report and up 0.1% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 42.73 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 18.05 and a forward P/E multiple of 9.69.
J2 Global, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.61. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$69.24|
|P/E Ratio (Fwd)||9.7x|
|Total Debt / Total Capital||32.2%|
|Levered Free Cash Flow||$351.6 million|
|EV / EBITDA||7.9x|
J2 Global, Inc. is a mid-cap stock with a market capitalization of $3.296 billion and a total enterprise value of $4.262 billion. The company operates in the Information Technology sector and the Software industry.
J2 Global, Inc., together with its subsidiaries, provides Internet services worldwide. The company operates through three segments: Fax and Martech; Voice, Backup, Security, and Consumer Privacy and Protection; and Digital Media. It offers cloud services, which includes online fax services under the eFax, sFax, MyFax, eFax Plus, eFax Pro, eFax Secure, eFax Corporate, and eFax Developer brands; on-demand voice, cloud phone, and unified communications services under the eVoice, Line2, and Onebox names; online backup and disaster recovery, sync storage, veeam services, and synchronization and sharing solutions under the KeepItSafe, LiveDrive, LiveVault, OffsiteDataSync, and SugarSync names; email security, web security, and endpoint protection services under the VIPRE and Excel Micro brands; email marketing and delivery services under the Campaigner and SMTP names; virtual private network services under the IPVanish and Encrypt.me; IP licensing services; and customer support services. The company also operates a portfolio of Web properties and applications, including IGN, Mashable, PC Mag, Humble Bundle, Speedtest, Offers, Black Friday, AskMen, MedPageToday, Everyday Health, What to Expect, and others that offer technology products, gaming and lifestyle products and services, news and commentary related products, speed testing for Internet and network connections, online deals and discounts for consumers, interactive tools and mobile applications, and tools and information for healthcare professionals, as well as professional networking tools, targeted emails, and white papers for IT professionals. It serves sole proprietors, small to medium-sized businesses and enterprises, and government organizations. The company was formerly known as j2 Global Communications, Inc. and changed its name to j2 Global, Inc. in December 2011. J2 Global, Inc. was founded in 1995 and is headquartered in Los Angeles, California.