CyberArk's (CYBR) Q2 Earnings: Is a Beat in the Offing?

CyberArk Software Ltd.CYBR is scheduled to report second-quarter 2018 results on Aug 7.

Notably, the company beat estimates in each of the trailing four quarters, delivering an average positive surprise of 27.54%.

In the last reported quarter, the company came up with a positive earnings surprise of 52.38%. Let's see how things are shaping up for this announcement.

CyberArk Software Ltd. Price and EPS Surprise

CyberArk Software Ltd. Price and EPS Surprise | CyberArk Software Ltd. Quote

Factors Likely to Drive Results

CyberArk is riding on its acquisition strategy. In March, the company acquired certain assets of a privately-held cloud security provider, Vaultive, which is helping it address the needs of the administrators of Software-as-a-Service, Infrastructure-as-a-Service and Platform-as-a-Service projects.

Furthermore, the rising demand for cyber security and the growing popularity of cloud computing have further increased demand for adequate security policies, protocols and products. CyberArk is growing rapidly in this space on the back of its privileged access management solutions. The second quarter has witnessed a few enhancements in these solutions, which are likely to have positively impacted its revenues.

The company's launch of CyberArk Marketplace in the second quarter is also likely to have augured well for the company

Moreover, CyberArk's strategy of enhancing relationship with channel partners is bringing in new customers. The company has expanded its offering for managed security service providers in April, allowing them to access more market opportunities and create additional revenue streams. This is expected to pull in more customers.

Apart from this, the company's C3 technology alliance program is also influencing deals, which in turn, are boosting its revenues. CyberArk has nearly 70 partners now under this program, including companies like Proofpoint, Qualys and ServiceNow. We believe the continued positive trend of this program will continue driving its top-line performance.

However, increasing operating expenses pertaining to initiatives related to enriching the solutions suite and enhancing sales competency are likely to remain an overhang.

Moreover, a substantial portion of the company's sales is derived from outside the United States. The global trade war, which continued through the second quarter, is a concern

What the Zacks Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP . Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

CyberArk has a Zacks Rank #3 and an Earnings ESP of +3.38%, which indicates a likely positive surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Other Stocks to Consider

Here are some other stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Qualys, Inc. QLYS with an Earnings ESP of +0.66%, and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Radware Ltd. RDWR with an Earnings ESP of +8.57% and a Zacks Rank #1.

Proofpoint, Inc. PFPT with an Earnings ESP of +1.23% and a Zacks Rank #2.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Radware Ltd. (RDWR): Free Stock Analysis Report

Qualys, Inc. (QLYS): Free Stock Analysis Report

CyberArk Software Ltd. (CYBR): Free Stock Analysis Report

Proofpoint, Inc. (PFPT): Free Stock Analysis Report

To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics

Earnings Stocks

Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More