Investors hope LivePerson (Nasdaq: LPSN) will top analyst estimates once again after beating predictions by $0.03 in the previous quarter. The company will unveil its latest earnings on Wednesday, Aug. 3. LivePerson provides online engagement solutions that facilitate real-time assistance and expert advice. Its hosted software platform creates more relevant and personalized online experiences.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like LivePerson better than competitor inContact overall. Two out of three rate inContact a buy, compared with six of six for LivePerson. Although analysts still rate the stock a moderate buy, they are a little more optimistic about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $31.7 million in revenue this quarter. That would represent a rise of 20% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.05 per share. Estimates range from $0.04 to $0.06.

What our community says:
CAPS All-Stars are solidly behind the stock, with 97% giving it an "outperform" rating. The community at large concurs with the All-Stars, with 95% awarding it a rating of "outperform." Fools have embraced LivePerson and haven't been shy with their opinions lately, logging 125 posts in the past 30 days. LivePerson has a bullish CAPS rating of five out of five stars that is about on par with the Fool community's assessment.

Management:
LivePerson's profit has risen year over year by an average of 26.1%.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Gross Margin 73.4% 72.5% 73.1% 72.8%
Operating Margin 16.7% 13.7% 14.7% 9.9%
Net Margin 10.6% 9.2% 9.8% 6.1%
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