Digital transformation consultancy Grid Dynamics (NASDAQ:GDYN) will be reporting earnings tomorrow after the bell. Here’s what you need to know.

Grid Dynamics beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $100.3 million, up 28.5% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.

Is Grid Dynamics a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Grid Dynamics’s revenue to grow 23.3% year on year to $98.44 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Grid Dynamics has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.1% on average.

Looking at Grid Dynamics’s peers in the it services & other tech segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IBM posted flat year-on-year revenue, beating analysts’ expectations by 1%, and ASGN reported a revenue decline of 7.7%, topping estimates by 0.6%. IBM traded down 6.5% following the results while ASGN was also down 11.3%.

Read our full analysis of IBM’s results here and ASGN’s results here.

Investors in the it services & other tech segment have had fairly steady hands going into earnings, with share prices down 2% on average over the last month. Grid Dynamics is down 7.5% during the same time and is heading into earnings with an average analyst price target of $17.67 (compared to the current share price of $14.35).

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