Ncino ( NCNO ) is set to give its latest quarterly earnings report on Wednesday, 2024-12-04. Here's what investors need to know before the announcement.

Analysts estimate that Ncino ( NCNO ) will report an earnings per share (EPS) of $0.16.

Ncino ( NCNO ) bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.01, leading to a 13.87% drop in the share price the following trading session.

Here's a look at Ncino's ( NCNO ) past performance and the resulting price change:

Market Performance of Ncino's Stock

Shares of Ncino ( NCNO ) were trading at $41.55 as of December 02. Over the last 52-week period, shares are up 40.47%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Ncino

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Ncino ( NCNO ).

A total of 5 analyst ratings have been received for Ncino ( NCNO ), with the consensus rating being Neutral. The average one-year price target stands at $43.6, suggesting a potential 4.93% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Freshworks, Intapp and InterDigital, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

The consensus outlook from analysts is an Outperform trajectory for Freshworks, with an average 1-year price target of $17.11, indicating a potential 58.82% downside.

For Intapp, analysts project an Buy trajectory, with an average 1-year price target of $55.38, indicating a potential 33.29% upside.

The prevailing sentiment among analysts is an Buy trajectory for InterDigital, with an average 1-year price target of $160.0, implying a potential 285.08% upside.

Analysis Summary for Peers

In the peer analysis summary, key metrics for Freshworks, Intapp and InterDigital are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Ncino ( NCNO ) ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. However, it has the lowest return on equity.

All You Need to Know About Ncino

Ncino Inc ( NCNO ) is a provider of cloud-based software for financial institutions. Its software solution digitizes, automates, and streamlines inefficient and complex processes & workflow and utilizes data analytics & artificial intelligence that enables financial institutions to onboard new clients, make loans and manage the entire loan life cycle, open deposits, and other accounts and manage regulatory compliance. It also offers professional services, including configuration & implementation, training, and advisory services. Ncino ( NCNO ) generates the majority of its revenue from subscription services. The company caters to financial institutions, enterprise banks, regional banks, community banks, and credit unions. The vast majority of its revenue comes from the United States.

Ncino: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Ncino's ( NCNO ) remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 12.94%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Ncino's ( NCNO ) net margin excels beyond industry benchmarks, reaching -8.34%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.03%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.78%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.1.

To track all earnings releases for Ncino ( NCNO ) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.