WidePoint Corp (WYY)

[Methinks]

WidePoint (WYY) to Report Q4 Earnings: What's in Store?

https://finance.yahoo.com/news/widepoint-wyy-report-q4-earning

WidePoint Corporation WYY is slated to release fourth-quarter 2020 results on Mar 23.

For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $44.39 million, indicating a 58% year-over-year surge.

For the bottom line, the Zacks Consensus Estimate stands at 5 cents, implying year-over-year growth from a break-even.

Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched in one, the average surprise being 30%.

Let’s see how things have shaped up for this announcement.

Factors in Play

WidePoint’s quarterly revenues are anticipated to reflect benefits from the 2020 Census project, which is the largest managed mobility services project in the United States.

Material increases on other contracts are also expected to have continued throughout the quarter.

High demand for managed services, on the back of increased cloud adoption and lower budget for IT spending, is expected to have driven the demand for WidePoint’s products and solutions during the quarter under review.

Deal wins, especially from government agencies, are expected to have been a positive for the company.

Moreover, in the last earnings call, management had mentioned that the company has added more-than-expected higher-margin revenue streams. This might have driven growth in adjusted EBITDA during the fourth quarter.

What Our Model Says

Our proven model does not predict an earnings beat for WidePoint this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

WidePoint currently has a Zacks Rank of 3 and an Earnings ESP of 0.00%.