MongoDB ( NASDAQ: MDB ) is set to report second-quarter results on August 31 and investment firm Monness, Crespi, Hardt believes that the database company's Atlas service will be the star of the show.
Analyst Brian White, who has a neutral rating on MongoDB ( MDB ), noted that demand for next-generation databases are still "firmly in place" and it's likely that the company could handily beat expectations.
"We believe the Street’s estimates are overly conservative," White wrote in a note to clients.
The analyst added that Wall Street's second-quarter revenue estimate "reflects the weakest [quarter-over-quarter] revenue performance we have on record for MongoDB," which even in the current environment, "defies logic" given the company's past history.
White estimates MongoDB ( MDB ) will earn an adjusted 11 cents per share on $315M in revenue, up 58% year-over-year, thanks to 59% growth in Atlas subscription revenue.
A consensus of analysts estimate MongoDB ( MDB ) will lose 28 cents per share on $282.31M in sales.
While growth could decelerate for MongoDB ( MDB ), given slowing growth for the cloud hyperscalers such as Amazon ( AMZN ), Google ( GOOG ) ( GOOGL ), Microsoft ( MSFT ), it's not likely to be as bad as Wall Street is expecting.
Looking ahead to the next quarter, White believes that MongoDB ( MDB ) will generate $358.9M in revenue and earnings of 19 cents per share. For the full-year, MongoDB ( MDB ) is expected to generate between $1.172B and $1.192B in revenue.
Earlier this month, investment firm RBC said that MongoDB ( MDB ) was one of the top stock picks when the economy emerges from a possible recession .
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MongoDB set to report Q2 this week, with Atlas expected to remain the star