Healthcare professional network Doximity (NYSE:DOCS) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Doximity beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $126.7 million, up 16.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and optimistic revenue guidance for the next quarter.
Is Doximity a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Doximity’s revenue to grow 11.9% year on year to $127.2 million, in line with the 11.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Doximity has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.1% on average.
Looking at Doximity’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Cadence delivered year-on-year revenue growth of 18.8%, beating analysts’ expectations by 2.9%, and Agilysys reported revenues up 16.5%, topping estimates by 1.1%. Cadence traded up 12.5% following the results while Agilysys was down 7.9%.
Read our full analysis of Cadence’s results here and Agilysys’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 7% on average over the last month. Doximity is down 5.7% during the same time and is heading into earnings with an average analyst price target of $37.71 (compared to the current share price of $41.83).
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