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Sapiens (SPNS) to Report Q3 Earnings: What's in the Cards?

Sapiens International Corporation N.V. SPNS is set to release third-quarter 2019 results on Nov 4.

The Zacks Consensus Estimate for revenues in the third quarter currently stands at $81.5 million, indicating growth of 11.3% from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings stayed at 19 cents over the past 30 days, indicating an increase of 26.7% from the figure reported in the year-ago quarter.

Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 13.7%.

In the last reported quarter, Sapiens reported earnings of 19 cents per share that beat the Zacks Consensus Estimate by a couple of cents. Revenues of $79.5 million also surpassed the consensus mark of $78 million.

Sapiens International Corporation N.V. Price and EPS Surprise


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

Factors to Watch

Sapiens is expected to have benefited from an expanding customer base in the to-be-reported quarter. Moreover, P&C segment revenues improved sequentially in the second quarter, a trend that most likely continued in the third quarter owing to strong clientele.

Further, the company’s portfolio strength and offerings, driven by an expanding partner base, are expected to have boosted the top line in the third quarter. For instance, Sapiens’ partnership with predictive cyber risk modeling firm, Kovrr, has helped the former offer innovative third-party and insuretech solutions to its customers.   

The bottom-line performance is expected to reflect expanding offshore capabilities, particularly in India, and stringent cost control.

However, Sapiens expects an unfavorable foreign exchange rate to dampen third-quarter results.

Key Q3 Developments

On Sep 16, Sapiens announced a new partnership with Atos.

On Jul 15, Sapiens announced that MAPFRE MSV Life, the leading provider of life insurance protection, long-term savings and retirement planning in Malta, has selected its life & pension core suite and digital solutions.

What Our Model Says

According to the Zacks model, a company with a positive Earnings ESP along with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates.

Although Sapiens has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

BlackLine BL has an Earnings ESP of +21.74% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fastly FSLY has an Earnings ESP of +1.82% and a Zacks Rank #3.

Zillow Group ZG has an Earnings ESP of +5.09% and a Zacks Rank #3.

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