The upcoming report from Vertex (VERX) is expected to reveal quarterly earnings of $0.14 per share, indicating an increase of 7.7% compared to the year-ago period. Analysts forecast revenues of $176.63 million, representing an increase of 14% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Vertex metrics that are commonly monitored and projected by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Revenues- Services' of $24.35 million. The estimate points to a change of +0.6% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenues- Software subscriptions' should arrive at $152.36 million. The estimate indicates a year-over-year change of +16.6%.

The consensus estimate for 'Annual Recurring Revenue' stands at $604.93 million. Compared to the current estimate, the company reported $512.50 million in the same quarter of the previous year.

View all Key Company Metrics for Vertex here>>>

Over the past month, shares of Vertex have returned -23% versus the Zacks S&P 500 composite's -0.5% change. Currently, VERX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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This article originally published on Zacks Investment Research (zacks.com).

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