Unlocking Q4 Potential of LegalZoom (LZ): Exploring Wall Street Estimates for Key Metrics

Wall Street analysts expect LegalZoom (LZ) to post quarterly earnings of $0.18 per share in its upcoming report, which indicates a year-over-year decline of 5.3%. Revenues are expected to be $184.6 million, up 14.2% from the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

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

The collective assessment of analysts points to an estimated 'Revenue- Subscription' of $125.44 million. The estimate points to a change of +15.4% from the year-ago quarter.

The consensus among analysts is that 'Revenue- Transaction' will reach $59.30 million. The estimate suggests a change of +12% year over year.

Analysts forecast 'Subscription units at period end' to reach 1,969 . Compared to the present estimate, the company reported 1,766 in the same quarter last year.

The combined assessment of analysts suggests that 'Average order value (AOV)' will likely reach $244.10 . The estimate is in contrast to the year-ago figure of $220.00 .

Analysts expect 'Transaction units' to come in at 243 . Compared to the present estimate, the company reported 241 in the same quarter last year.

The average prediction of analysts places 'Business formations' at 108 . The estimate is in contrast to the year-ago figure of 96 .

Over the past month, LegalZoom shares have recorded returns of -22.6% versus the Zacks S&P 500 composite's -1.4% change. Based on its Zacks Rank #4 (Sell), LZ will likely underperform the overall market in the upcoming period. 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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