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SVMK Q3 Earnings: Can NasdaqGS:SVMK Hit Its -$0.01 EPS Target?

in EARNINGS/INVESTING IDEAS by

SVMK Inc. (NasdaqGS:SVMK) is scheduled to report Q3 earnings results before markets open for trading on November 5, 2020.

The company is expected to report earnings of -$0.01/share on revenue of $95.13 million. The consensus earnings per share (EPS) of -$0.01/share is based on a poll of 8 analysts and represents a decline over the same quarter last year when the company reported earnings of $0/share.

The revenue forecast of $95.13 million based on a poll of 9 analysts implies a year-over-year (YoY) growth in revenue of 19.9%. Last year the company reported $79.317 million in revenue for the quarter.

Expected to report EPS of -$0.01/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $95.13 $79.32 19.9%
EPS -$0.01 $0

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 7 tracked quarters, and missed expectations 1 quarters.

What are your expectations from SVMK Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.02 $0 100% Beat
Q1, 2020 -$0.04 -$0.03 30.9% Beat
Q4, 2019 -$0.04 -$0.02 49.6% Beat
Q3, 2019 -$0.05 -$0 99.5% Beat
Q2, 2019 -$0.05 -$0.01 78.7% Beat
Q1, 2019 -$0.03 -$0.02 39.8% Beat
Q4, 2018 -$0.02 -$0.03 -49.3% Missed
Q3, 2018 -$0.06 -$0.01 82.4% Beat

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 falling −9.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $25.31 $22.97 −9.2% Decline
May 7, 2020 $15.87 $18.47 16.4% Increase
February 13, 2020 $18.49 $21.81 18.0% Increase
November 7, 2019 $17.41 $15.98 −8.2% 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 −2.76, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.76 implies a 0.3% chance of earnings manipulation.

Fundamentals And Technical Analysis

SVMK Inc. is currently trading at $21.36/share, down −4.4% for the day. The company is trading at approximately 82.3% of its 52-week high of $26.24/share. The company’s stock price is down −7.0% since the last earnings report and down −7.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 43.19 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:SVMK Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −35.34 and a forward P/E multiple of −793.72.

SVMK Inc.’s current share price also implies a price-to-book (P/B) multiple of 9.33. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $21.36
P/E Ratio −35.3x
P/E Ratio (Fwd) −793.7x
PEG Ratio −0.7
Total Debt / Total Capital 8.8%
Levered Free Cash Flow $57.148 million
EV / EBITDA −59.3x

Finbox

SVMK Inc. is a mid-cap stock with a market capitalization of $3.135 billion and a total enterprise value of $3.259 billion. The company operates in the Information Technology sector and the Software industry.

SVMK Inc. provides survey software products and purpose-built solutions that enable organizations to engage with their customers, employees, and the markets they research and serve in the United States and internationally. The company’s cloud-based SaaS platform helps individuals and organizations to design and distribute surveys approximately 190 countries and territories. Its offers SurveyMonkey CX, a customer experience (CX) and feedback solution that transforms customer feedback into actionable insights; TechValidate, a marketing content automation solution; and SurveyMonkey Engage, an employee engagement solution, which measures employee experiences within an organization. The company also provides SurveyMonkey Audience, a market research solution that enables organizations to gain real-time actionable data from targeted panelists; SurveyMonkey Apply, an application management solution that is primarily used by educational institutions and non-profits seeking to allocate scholarships and grants; and Wufoo, an easy-to-use form builder that helps users create Web and mobile forms, collect file uploads, and receive online payments. In addition, it offers GetFeedback, a CX solution designed for the salesforce ecosystem; and Usabilla, which provides voice of customer technology. The company was formerly known as SurveyMonkey Inc. and changed its name to SVMK Inc. in March 2013. SVMK Inc. was founded in 1999 and is headquartered in San Mateo, California.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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