Synchronoss Technologies (NASDAQ: SNCR) is gearing up to unveil its second-quarter 2024 financial results on August 6.
The Zacks Consensus Estimate predicts a 27.84% decrease in top-line revenue from the previous year, settling at $43.09 million.
Analysts anticipate earnings to remain steady at 7 cents per share, with no changes over the last month.
Over the past four quarters, Synchronoss has exceeded earnings expectations three times, with an average positive surprise of 28.82%.
Insights into Synchronoss Technologies Performance
Leading up to the earnings announcement, SNCR is expected to benefit from an expanding cloud subscriber base, with projected growth in the high single-digit to low double-digit range for 2024.
The company’s transition to a cloud-focused business model has optimized operations and boosted financial performance, especially through high-margin personal cloud services.
In the first quarter of 2024, the enhancements made to the Synchronoss Personal Cloud Platform are likely to improve operational efficiency and financial outcomes in the upcoming quarter.
Auto-scaling features and flexible plans within the platform are anticipated to drive subscriber growth and retention in the current quarter.
SNCR’s efforts to strengthen its global presence are expected to enhance performance, particularly with the introduction of the Anshin Data Box in collaboration with SoftBank to tap into the Japanese market.
Collaborations with industry giants like AT&T and Verizon Communications have been instrumental in expanding Synchronoss’ cloud solutions portfolio and driving revenue growth.
Despite these positive developments, SNCR may face challenges in the upcoming quarter due to pending federal tax refunds and ongoing debt repayment obligations.
Evaluating the Outlook
According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of surpassing earnings estimates, but this scenario does not apply to Synchronoss Technologies for the current period.
While Synchronoss Technologies holds a Zacks Rank #2 (Buy) at present, the Earnings ESP stands at +0.00%.
Stocks to Watch
As we look ahead, companies like Shopify (NYSE: SHOP) present promising opportunities, with an Earnings ESP of +7.78% and a Zacks Rank #2.
Shopify is scheduled to reveal its second-quarter 2024 results on August 7, after a 23.2% decline in share value year-to-date.
