GoDaddy Inc. (NYSE:GDDY) is scheduled to report Q3 earnings results after markets close for trading on November 4, 2020.
The company is expected to report earnings of $1.07/share on revenue of $835.3 million. The consensus earnings per share (EPS) of $1.07/share is based on a poll of 4 analysts and represents a growth in eps of 61.7% over the same quarter last year, when the company reported earnings of $0.66/share.
The revenue forecast of $835.3 million based on a poll of 13 analysts implies a year-over-year (YoY) growth in revenue of 9.8%. Last year the company reported $760.5 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has never exceeded analyst expectations for the last 8 tracked quarters, and missed expectations 8 quarters.
What are your expectations from GoDaddy 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 7.9%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 5, 2020||$73.23||$79||7.9%||Increase|
|May 6, 2020||$68.62||$73.04||6.4%||Increase|
|February 13, 2020||$70.90||$78.39||10.6%||Increase|
|November 6, 2019||$62.16||$73.03||17.5%||Increase|
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 −3.18, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.18 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
GoDaddy Inc. is currently trading at $70.89/share, down −1.9% for the day. The company is trading at approximately 79.2% of its 52-week high of $89/share. The company’s stock price is down −10.3% since the last earnings report and down −9.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 38.61 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 −23.75 and a forward P/E multiple of 546.84.
GoDaddy Inc.’s current share price also implies a price-to-book (P/B) multiple of −45.17. 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)||$70.89|
|P/E Ratio (Fwd)||546.8x|
|Total Debt / Total Capital||18.2%|
|Levered Free Cash Flow||$691.4 million|
|EV / EBITDA||27.8x|
GoDaddy Inc. is a large-cap stock with a market capitalization of $12.051 billion and a total enterprise value of $13.978 billion. The company operates in the Information Technology sector and the IT Services industry.
GoDaddy Inc. designs and develops cloud-based technology products in the United States and internationally. The company provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity. It also offers shared Website hosting products that provide various applications and products such as web analytics, SSL certificates, and WordPress; Website hosting on virtual private servers and virtual dedicated servers products, which allows customers to select the server configuration suited for their applications, requirements, and growth; managed hosting products to set up, monitor, maintain, secure, and patch software and servers for customers; and security products, a suite of tools designed to help secure customers’ online presence. In addition, the company provides presence products, such as Websites + Marketing, a mobile-optimized online tool that enables customers to build Websites and online stores; a range of marketing tools and services designed to help businesses acquire and engage customers, as well as search engine optimization that helps customers get their Websites found on search sites; and social media management services. Further, it offers business application products, such as Microsoft Office 365, email accounts, email marketing, and telephony services. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was incorporated in 2014 and is headquartered in Scottsdale, Arizona.