Forrester Research (FORR) Exceeds Second Quarter Earnings and Revenue Estimates – July 28, 2022

Forrester Search (FORR Free Report) came out with quarterly earnings of $1 per share, beating Zacks consensus estimate of $0.74 per share. That compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 35.14%. A quarter ago, this tech research company was expected to post earnings of $0.32 per share when it actually produced earnings of $0.45, delivering a surprise 40.63 %.

In the past four quarters, the company has exceeded consensus EPS estimates four times.

Forrester Research, which is part of Zacks’ IT services business, posted revenue of $148.25 million for the quarter ended June 2022, beating Zacks’ consensus estimate by 1.07%. That compares to revenues of $128.67 million a year ago. The company has exceeded consensus revenue estimates three times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Forrester Research shares have lost about 14.6% year-to-date versus a -15.6% decline for the S&P 500.

What’s next for Forrester Research?

With Forrester Research outperforming the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Before this publication of the results, the trend of revisions of estimates for Forrester Research: mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $133.34 million in revenue for the upcoming quarter and $2.31 on $555.38 million in revenue for the current fiscal year.

Investors should be aware that industry outlook can also have a significant impact on stock performance. In terms of Zacks industry rankings, Computer – Services is currently in the top 36% of over 250 Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in the same sector, CSG Systems (CSGS Free Report), has yet to report its results for the quarter ended June 2022. The results are expected to be released on August 3.

This provider of support services for the communications industry is expected to post quarterly earnings of $0.84 per share in its next report, representing a year-over-year change of +2.4%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.

CSG Systems revenue is expected to be $265.1 million, up 11.2% from the prior year quarter.

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