Lightspeed POS LSPD is scheduled to release its second-quarter fiscal 2025 results on Nov. 7, before market open.

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LSPD surpassed the Zacks Consensus Estimate in the four trailing quarters, delivering an average earnings surprise of 188.3%.

LSPD’s Q2 Expectations

The Zacks Consensus Estimate for revenues is pegged at $274 million, hinting at a 19% increase from the year-ago quarter’s actual. The top line is anticipated to have benefited from unified payment efforts and increasing software average revenues per unit, given the company’s focus on LSPD’s products and shift in its customer base toward higher gross transaction volume locations.

We expect an increase in the gross payment volume as a greater portion of its gross transaction volume, which went through the company’s Lightspeed Payments platform, to have driven transaction revenues.

The consensus estimate for the bottom line is pegged at 10 cents per share, suggesting a more than 100% rise from the year-ago quarter’s actual. The bottom line is expected to have gained from strong margins because of cost control, which allowed LSPD to demonstrate leverage in its business model.

What Our Model Says About LSPD

Our proven model does not conclusively predict an earnings beat for LSPD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Lightspeed has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season:

Paysafe Limited PSFE: The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is pegged at $424.5 million, indicating growth of 7.1% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 58 cents per share, suggesting a 1.8% rise from the year-ago quarter’s reported number. PSFE surpassed the consensus estimate in three of the past four quarters and missed once, with an average beat of 29.3%.

PSFE has an Earnings ESP of +5.17% and a Zacks Rank of 3 at present. The company is scheduled to declare its second-quarter fiscal 2025 results on Nov. 11.

Block SQ: The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $6.2 billion, indicating an increase of 9.8% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 88 cents per share, suggesting a 60% rise from the year-ago quarter’s reported number. SQ surpassed the consensus estimate in three of the past four quarters and missed once, with an average beat of 15.5%.

SQ has an Earnings ESP of +5.98% and a Zacks Rank of 3 at present. The company is scheduled to declare its third-quarter 2024 results on Nov. 11.

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