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Vertex to Report Q4 Earnings: What's in Store for the Stock?

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Vertex, Inc. (VERX - Free Report) is scheduled to report fourth-quarter 2024 results before market open on Feb. 27.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for Vertex’s fourth-quarter 2024 earnings is pegged at 14 cents per share, implying a year-over-year increase of 7.7%.
Vertex’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.8%.

Vertex expects its fourth-quarter 2024 revenues to be in the range of $175-$178 million. The Zacks Consensus Estimate for Vertex’s fourth-quarter 2024 revenues is pegged at $176.6 million, suggesting year-over-year growth of 14%.
Let’s see how things have shaped up for this announcement.

Vertex, Inc. Price and EPS Surprise

Vertex, Inc. Price and EPS Surprise

Vertex, Inc. price-eps-surprise | Vertex, Inc. Quote

Factors to Consider for VERX

Vertex’s fourth-quarter 2024 performance is likely to have benefited from increasing demand for its tax automation solutions as companies are moving from legacy ERP systems to modern cloud-based solutions. Increased adoption of Vertex’s tax automation solution is likely to have expanded its client roster and improved its top-line growth.

VERX’s transition to cloud-based solutions is likely to have proved to be a major growth driver for the company. Growing demand for flexible, scalable, and cost-efficient tax compliance tools is likely to have boosted cloud sales to new customers driving its top-line growth in the to-be-reported quarter.

Vertex’s shift from one-time software licenses to subscription-based SaaS models is likely to have contributed to its recurring revenues in the to-be-reported quarter. Additionally, new global e-invoicing mandates, particularly in France and Germany, are likely to boost the adoption of Vertex’s integrated tax compliance and invoicing solutions generating additional revenues for Vertex in the to-be-reported quarter.

The latest additions of features to its platform, including Vertex for Salesforce Revenue Cloud and Vertex Copilot, are likely to have expanded its reach among potential customers, hence contributing to the top-line growth in the to-be-reported quarter.

What Our Model Says About VERX

Our proven model does not conclusively predict an earnings beat for VERX 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. However, that’s not the case here.

Though VERX currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Marvell Technology (MRVL - Free Report) , ODDITY (ODD - Free Report) and IonQ (IONQ - Free Report) are some stocks that have a favorable combination.

Marvell Technology has an Earnings ESP of +2.77% and a Zacks Rank #2 at present. MRVL shares have gained 51.3% in the trailing 12-month period. MRVL is set to report its fourth-quarter 2024 results on March 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

ODDITY has an Earnings ESP of +4.00% and a Zacks Rank #3 at present. ODD shares have rallied 9.9% in the trailing 12-month period. ODD is slated to report its fourth-quarter 2024 results on Feb. 25.

IonQ has an Earnings ESP of +35.14% and a Zacks Rank #3 at present. IONQ shares have gained 182.4% in the trailing 12-month period. IONQ is scheduled to report its fourth-quarter 2024 results on Feb. 26.

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