Endava PLC (DAVA) reported quarterly earnings that failed to meet Wall Street’s expectations, adding to the company’s recent struggles. For the quarter ended June 2024, the company reported earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.29 per share. This represents a decline from the $0.71 per share earned a year ago. The company’s revenue also missed the mark, coming in at $245.3 million compared to the consensus estimate of $248.3 million.
While Endava has struggled to meet earnings expectations in recent quarters, it’s important to note that its performance is closely tied to the broader IT services industry. The company’s future prospects will depend on its ability to navigate industry trends and deliver on its growth strategy.
To gauge Endava’s future prospects, investors should consider the company’s earnings outlook. The Zacks Rank is a helpful tool that leverages the power of earnings estimate revisions to predict future stock performance. Endava currently holds a Zacks Rank #3 (Hold), indicating that the stock is expected to perform in line with the market.
Looking ahead, the current consensus EPS estimate for the next quarter is $0.38 on $257.42 million in revenues, while the current fiscal year estimate stands at $1.60 on $1.06 billion in revenues. However, investors should be aware that the outlook for the broader IT services sector could significantly impact Endava’s performance.
It’s important to compare Endava’s performance to its peers within the IT services industry. Accenture (ACN), a leading consulting firm, is expected to report its earnings for the quarter ended August 2024 on September 26. The consensus EPS estimate for the quarter is $2.77 per share, representing a year-over-year increase of +2.2%. Accenture’s revenues are projected to reach $16.33 billion, up 2.2% from the previous year.
Overall, Endava faces challenges amidst a challenging market environment. While the company’s earnings outlook is closely tied to the broader IT services industry, investors should keep a close eye on its performance and adjust their investment strategies accordingly.
