BroadSoft Announces Q1 2014 Earnings on Monday, May 5, 2014

BroadSoft, Inc. (?BSFT) is set to release its Q1 2014 earnings report at 8:30 am, Eastern Standard Time on Monday, May 5, 2014, before the market opens. The earnings report will be simultaneously released via a live conference call and a live audio webcast on the company’s website.

Corporate Guidance

For the 4th quarter ending Dec. 31, 2013, BroadSoft’s stock price closed at $27.21. Since then, the stock price dropped 19% and is currently trading in the $24.50 - $25.50 range. Company guidance predicts Q1 2014 revenue between $42 million and $47 million with an EPS of $0.10. These figures are considerably less than what BroadSoft posted in Q4 2013 but are on par with Q3 2013 amounts.

Analysts Expectations

Analyst estimates are in keeping with the figures provided by BroadSoft’s earlier guidance. The EPS estimate ranges from a low of $0.07 to a high of $0.15. Analysts expect the company’s revenue to fall between a low of $43.42 million to a high of $45.81 million.

Analysts are currently bearish on BroadSoft. During Q1 2014, revenue for the application software industry as a whole grew 36.30% while Broadsoft’s revenue fell by 44.40%. For the year 2014, application software industry revenue is expected to grow 69.80% while BroadSoft’s annual revenue growth is confined to 10.70%. Analysts including Zach’s and Thompson Reuters are neutral on the company while Columbine Capital Services rate BroadSoft as underperform.

Trading the Earnings Report

Using pivot points, along with support and resistance levels, is one way to trade BroadSoft’s earnings report. Using $25.11 as the pivot point, support and resistance can be pegged at these levels:

Analysts’ long-term stock target price is $36 a share.

Disclosure: I do not own BroadSoft stock and have no intention of opening a position in the next 72 hours.