Application software firm Atlassian (TEAM) has performed extremely well over the last few years. The stock is up almost 145% over the last two years, while the S&P 500 is up a far more modest 21%. Even when compared to the iShares Expanded Tech-Software Sector ETF (IGV), Atlassian has gained twice as much as the sector.
Atlassian is getting ready to report fiscal first-quarter results in the next few weeks, and the stock is trading near an all-time high ahead of that earnings report. I wasn’t able to find the exact earnings date, as the company didn’t have the event on its Investor Relations page just yet. Several websites, including the Wall Street Journal, have the earnings report coming out on October 15. Based on the fact that Q4 2020 results were released on July 30 and third-quarter results were released on April 30, I am thinking the report will be in a few weeks, not on the 15th.
Regardless of when the report comes out, analysts expect the company to report EPS of $0.27 for the quarter, and that is a penny shy of the $0.28 Atlassian reported in Q1 last year. Revenue is expected to come in at $$440.49 million, and that is an increase of 25.2% compared to last year.
Over the last three years, the company has seen earnings grow by 52% per year, while revenue has grown by 38% per year. The fourth-quarter results showed earnings growth of 25% and revenue growth of 29%. Analysts expect the earnings growth to slow down in 2021 with an estimated growth rate of 3%. Revenue is expected to grow by 18.8%.
In addition to the tremendous earnings and revenue growth, Atlassian has strong management efficiency measurements. The return on equity is extremely high at 50.6%, and the