Yahoo Finance Should CyberArk (CYBR) be in Your Portfolio Before Q1 Earnings?
CyberArk Software Ltd. CYBR, a software-based identity security solution and services provider, is set to report first-quarter 2024 results before market open on May 2.
Shares of CyberArk have outperformed the Zacks Computer – IT Services industry in the year-to-date (YTD) period. CYBR stock has risen 10.8% YTD, while the Computer – IT Services industry increased 5.7% during the same time frame.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 76.3%. CyberArk projects revenues in the $209-$215 million band (midpoint of $212 million) and non-GAAP earnings per share in the 21-31 cents band (midpoint of 26 cents) for the first quarter of 2024.
The Zacks Consensus Estimate for CyberArk’s first-quarter earnings has been revised upward by a penny to 27 cents per share over the past 60 days and indicates a robust improvement from the year-ago quarter’s loss of 17 cents. The consensus mark for revenues stands at $213.4 million, which calls for a 32% increase from the year-ago quarter.
In the last reported quarter, CYBR’s non-GAAP earnings per share of 81 cents surpassed the Zacks Consensus Estimate of 47 cents and came in more than fivefold than the year-ago quarter’s 16 cents. Revenues increased 32% year over year to $223.1 million and beat the consensus mark of $209.7 million.
Despite facing headwinds from uncertain macroeconomic conditions and a tepid IT spending environment, CyberArk has shown resilience and remains one of the dominant players in the identity security solution space. With CYBR gearing up to report its first-quarter earnings, let’s evaluate whether now is the right time to buy this networking giant.
CyberArk Software Ltd. Price and EPS Surprise
CyberArk Software Ltd. price-eps-surprise | CyberArk Software Ltd. Quote
Should You Invest in CYBR Stock Now?
CyberArk's cyber security products are in high demand as data breaches are increasing. Cloud computing and its cost-effective resource sharing have led to more advanced cyber thefts via the cloud, boosting the need for better security measures. The company benefits from the increasing security budgets of customers who need to meet the growing need for security policies, protocols and products.
CyberArk’s privileged access management (PAM), enterprise password vault and privileged session manager are addressing various enterprise-level challenges, increasing CYBR’s competitive edge in the market. The company's PAM solutions provide customers with a range of products to secure, manage and monitor privileged account access and activities.
Furthermore, as companies are embracing hybrid working policies, they need to implement stricter data security measures. To address this need, CyberArk enhanced customer engagement by offering essential products like Enterprise Password Vault and Privileged Session Manager.
Due to its expertise, CYBR is gaining customer accounts, which adds to its top line. The large customer base gives the company a chance to sell more products to existing users. Also, CyberArk has closed many big deals in recent quarters, which is positive as it boosts deferred revenues and visibility. Additionally, when products are updated, it brings in more money as companies strive to keep their threat management systems up-to-date.
Additionally, CYBR currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of B at present. The Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 (Buy) and a Growth Score of A or B offer solid investment opportunities.
Therefore, considering the company’s impressive growth profile and attractive Zacks Style Score, we believe it is the right time to invest in the stock.
Other Stocks to Consider
Some other stocks in the broader technology space worth considering are Pinterest, Inc. PINS, Dropbox, Inc. DBX and NVIDIA Corporation NVDA.
Pinterest is set to report first-quarter 2024 results on Apr 30. The stock sports a Zacks Rank #1 and has a Growth Score of B. Pinterest’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 37.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pinterest’s first-quarter earnings has remained unchanged at 14 cents per share over the past 60 days, which indicates a year-over-year increase of 75%. The consensus mark for first-quarter revenues is pegged at approximately $700 million, which calls for a year-over-year increase of 16.2%. PINS stock has declined 8.3% YTD.
Dropbox is slated to report first-quarter 2024 results on May 9. The stock carries a Zacks Rank #2 and has a Growth Score of B. Dropbox’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.5%
The Zacks Consensus Estimate for Dropbox’s first-quarter earnings has remained unchanged at 49 cents per share over the past 30 days, which indicates a year-over-year increase of 16.7%. The consensus mark for first-quarter revenues is pegged at $628.8 million, which calls for a year-over-year increase of 2.9%. DBX stock has plunged 18.1% YTD.
NVIDIA is set to report first-quarter fiscal 2025 results on May 22. The stock carries a Zacks Rank #2 and has a Growth Score of A. NVIDIA’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 20.2%
The Zacks Consensus Estimate for NVIDIA’s first-quarter earnings has been revised upward by a penny to $5.49 per share over the past 30 days, which implies a year-over-year increase of 403.7%. The consensus mark for first-quarter revenues is pegged at $24.17 billion, which suggests a year-over-year jump of 236.1%. NVDA stock has soared 77.2% YTD.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
