Earnings Preview: Saba Software
Saba Software (SABA) is expected to report Q1 earnings Thursday Oct. 9 after market close, with a conference call scheduled for 5:00 pm ET.
Guidance
The consensus estimate is 2c for EPS and $26.62M for revenue, according to First Call.
Analyst Views
Wedbush expects Saba to report results in-line with their 2c and $27.4M in revenue estimates. On the last earnings call, management provided revenue guidance of $27M to $28M, but did not provide EPS guidance. Wedbush said that while the current market sentiment appears very poor, Saba's quarter closed in August, before much of the recent events unfolded. Wedbush believes the growing uncertainty regarding the U.S. slowdown could cause Saba to provide a wider guidance range than in the past, and/or lower guidance.
Saba is also in a key position to report on how September's market turbulence impacted their business, if at all, particularly in key geographies such as the U.S. and Europe. Wedbush believes the environment for LMS software sales could continue to weaken over the next few months, and it expects Saba management to provide conservative guidance supporting that thesis. Wedbush remains Neutral regarding Saba shares as the company faces a challenging transition from selling perpetual licenses to subscriptions. Consensus estimates for Q2 are 6c on $28.69M in revenue, and for FY09 24c on $115.79M in revenue.
Next event: The HR Technology Conference will take place October 15 to 17 in Chicago, where Saba and other software companies are expected to announce new products. Also, Saba's Global Summit will be held October 20 to 23 in Washington, D.C
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