Yahoo Finance OKTA Gears Up to Report Q1 Earnings: What's in the Cards?
Okta, Inc. OKTA is set to report its first-quarter fiscal 2025 results on May 29.
For the fiscal first quarter, the company anticipates non-GAAP earnings in the range of 54-55 cents per share.
The Zacks Consensus Estimate for earnings has remained steady at 54 cents per share over the past 30 days.
Revenues are expected in the range of $603-$605 million, indicating growth of 16%-17% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $604.33 million, indicating an increase of 16.67% from the year-ago quarter’s reported figure.
Okta, Inc. Price and EPS Surprise
Okta, Inc. price-eps-surprise | Okta, Inc. Quote
Okta’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 50.29%.
Let’s see how things have shaped up for Okta prior to this announcement:
Factors to Consider
The company’s first-quarter fiscal 2025 results are expected to reflect the benefits of increased use cases of identity solutions.
Okta Identity Cloud’s capability to consolidate and easily integrate existing applications without compromising security or stability is attracting customers. Okta products’ ability to automate processes, secure data and reduce costs has been a positive.
Expanding clientele has been a key catalyst. The company ended the fiscal fourth quarter with 18,950 customers, up 8% year over year. Customers with more than $100K in Annual Contract Value (ACV) increased 14% year over year.
Okta’s Workforce and Customer Identity solutions have been gaining adoption and the momentum is expected to have continued in the to-be-reported quarter.
Moreover, an expanding partner base that includes AWS, Google and Zoom is expected to have driven top-line growth in the fiscal first quarter. AWS currently generates more than $175 million in ACV, growing at over 130%.
However, Okta’s results are expected to have suffered from macroeconomic challenges that have been affecting contract term lengths and deal sizes across small and medium-sized businesses and enterprises. This is also expected to have hurt the net retention rate on a sequential basis.
What Our Model Indicates
Per 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.
Okta has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Dell Technologies DELL has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. You can find the complete list of today’s Zacks #1 Rank stocks here.
Dell is set to announce first-quarter fiscal 2025 results on May 30. DELL’s shares have increased 100.8% year to date.
HP HPQ has an Earnings ESP of +0.92% and currently carries a Zacks Rank #3.
HP is set to announce second-quarter fiscal 2024 results on May 29. HPQ shares have gained 8.5% year to date.
Broadcom AVGO currently has an Earnings ESP of +3.66% and a Zacks Rank #3.
Broadcom is set to announce second-quarter fiscal 2024 results on Jun 12. AVGO shares have returned 24.8% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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