What's In The Cards For MobileIron (MOBL) In Q3 Earnings?

MobileIron Inc. (NASDAQ:MOBL) is set to report third-quarter 2016 results on Oct 27. Last quarter, the company posted a negative earnings surprise of 3.85%. Over the past four quarters, the company has posted an average positive earnings surprise of 1.29%.

Let's see how things are shaping up for this announcement.

Factors to Consider

MobileIron provides security and management solutions for mobile applications, contents and devices. The company offers software tools for device management, activity intelligence and security. Its offerings include multi-OS mobile device management software, mobile application management, wireless expense management, enterprise mobility, mobile device security, Bring-Your-Own-Device privacy controls, and MobileIron Virtual Smartphone Platform.

The company reported mixed second-quarter 2016 results, wherein the top line beat the Zacks Consensus Estimate and compared favorably on a year-over-year basis. However, it reported a loss, which missed expectations.

In the to-be reported quarter, the company expects GAAP revenues between $39 million and $41 million with 3% to 8% year-over-year growth. Management expects non-GAAP gross margin to be between 81% to 83% and non-GAAP operating expenses to remain in the range of $41 million to $43 million.

Earnings Whispers

Our proven model does not conclusively show that MobileIron is likely to beat estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. However, that is not the case here due to the following factors:

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stands at a loss of 22 cents per share. Hence, the difference is 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Zacks Rank: MobileIron’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some stocks which, as per our model, have the right combination of elements to post an earnings beat this quarter:

Inovalon Holdings, Inc. (NASDAQ:INOV) , with an Earnings ESP of +50.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

MakeMyTrip Limited (NASDAQ:MMYT) , with Earnings ESP of +4.11% and a Zacks Rank #1.

SITO Mobile, Ltd. (NASDAQ:SITO) with Earnings ESP of +100.0% and a Zacks Rank #1.

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