SurgePays to Report Q2 Earnings: What's in the Cards?

SurgePays, Inc. SURG is set to report second-quarter 2024 results on Aug 13.

The Zacks Consensus Estimate for revenues is currently pegged at $23.35 million, suggesting a decrease of 34.94% from the figure reported in the year-ago quarter.

The consensus mark for loss per share has remained unchanged at 6 cents in the past 30 days, indicating a decline of 115% from the year-ago quarter's reported figure.

Let's see how things have shaped up for this announcement.

Factors to Note

SURG's second-quarter results are expected to be hurt by operational changes by management to shift the company's focus away from the non-core business Lead Generation's subsidiary LogicsIQ.

At the end of the first quarter, Comprehensive Platform Services reported revenues of $2.53 million, representing a 13.7% decline from the prior quarter. This trend is expected to have continued in the to-be-reported quarter.

In the first quarter, the company launched the LinkUp Mobile website, www. linkupmobile.com, and is well underway in the national rollout. This is likely to have aided the top-line growth in the second quarter.

In the first quarter, the company acquired the software development and point-of-sale equipment and operations of DNR Business Solutions Inc. d/b/a ClearLine Mobile. Goodwill was $4.16 million as of Mar 31, 2024, and $1.6 million as of Dec 31, 2023.

This acquisition is likely to have expanded SurgePays' customer base and enhanced its product offerings, creating new revenue opportunities. It is also expected to have generated operational efficiencies and strengthened SURG's competitive position in the to-be-reported quarter.

What Our Model Indicates

According to the Zacks model, 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's not the case here.

SURG has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.

Stocks With the Favorable Combination

Here are some stocks that, according to our model, have the right combination of elements to beat on earnings this season.

Brinker International EAT has an Earnings ESP of +6.40% and sports a Zacks Rank #1 at present.

Brinker International is set to report fourth-quarter fiscal 2024 results on Aug 14. The Zacks Consensus Estimate for EAT's earnings is pegged at $1.65 per share, indicating growth of 18.7% from the year-ago quarter's reported figure.

Abercrombie & Fitch ANF has an Earnings ESP of +5.40% and sports a Zacks Rank #1 at present.

Abercrombie & Fitch is slated to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for ANF's earnings is pegged at $2.13 per share, indicating a significant jump of 93.64% from the prior-year quarter's reported figure.

Affirm AFRM has an Earnings ESP of +19.64% and a Zacks Rank #2 at present.

Affirm is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for AFRM's loss is pegged at 45 cents per share, indicating a significant jump of 34.78% from the prior-year quarter's reported figure.

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