Zix Earnings Preview: Get Ahead of the Analysts

Zix (NASDAQ:ZIXI) will report earnings after markets close on Tuesday, July 23rd. Zix Corporation provides hosted internet applications in SaaS models that require high security. Two core businesses: Email Encryption for regulatory compliance and protecting sensitive communications and e-Prescribing, which provides real-time access to critical information at the point-of-care to enhance the electronic transmission of prescriptions directly to pharmacies.

Here is your Cheat Sheet to Zix Earnings:

Earnings Expectations: Analysts expect earnings of $0.03 per share on revenues of $11.66 million. Currently, the company’s P/E ratio stands at 31.64.

Analyst Trends:

Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate is a profit of $0.19, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Zix has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 28 31 33 38 43
Diluted EPS ($) -0.09 -0.07 0.62 0.34 0.17

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 10.34 11.02 11.69 11.76
Diluted EPS ($) 0.04 0.03 0.06 0.01

Past Performance:
Zix has beat analyst estimates 1 time in the past four quarters. This is not consistent enough to get bullish yet.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)