Qualys QLYS is scheduled to report third-quarter 2024 earnings after market close on Nov. 5, 2024.
For the third quarter, QLYS anticipates revenues between $149.8 million and $151.8 million. The Zacks Consensus Estimate for revenues is pinned at $150.6 million, indicating an improvement of 6% from the year-ago quarter’s revenues of $142 million.
Qualys anticipates non-GAAP earnings per share between $1.28 and $1.36. The consensus mark for third-quarter earnings has remained unchanged at $1.33 per share over the past 60 days, suggesting a decline of 12% from the year-ago quarter’s $1.51.
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QLYS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18%.
Let’s see how things are shaping up for this announcement.
Qualys, Inc. Price and EPS Surprise
Qualys, Inc. price-eps-surprise | Qualys, Inc. Quote
Factors to Note for Qualys
Qualys’ third-quarter performance is likely to have benefited from the surging demand for security and networking products amid the growing hybrid working trend. Accelerated digital transformations by organizations are also expected to have fueled the demand for QLYS’ cloud-based security solutions.
Qualys' recurring subscription-based business model has been providing relative stability to its top line amid post-pandemic disruptions. The company expects to drive durable top-line growth and leverage its highly scalable model to maintain strong cash flow and industry-leading profitability.
Qualys' ability to attract new customers and retain existing ones underscores its strong market positioning and value proposition. For the last few quarters, Qualys has been able to close a significant number of six-figure deals. This trend is likely to have continued in the to-be-reported quarter, thereby boosting its total revenues.
However, enterprises have been postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
This might have hurt Qualys’ overall financial performance in the third quarter. The top line is also likely to be affected by customer transition from Qualys on Microsoft Defender to TotalCloud CNAPP.
What Our Model Says About QLYS
Our proven model does not conclusively predict an earnings beat for QLYS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though QLYS currently carries a Zacks Rank #3, it has an Earnings ESP of -0.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks ANET has an Earnings ESP of +0.72% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANET shares have surged 70.5% year to date. ANET is slated to report third-quarter 2024 results on Nov. 7.
Jack Henry & Associates JKHY has an Earnings ESP of +0.11% and a Zacks Rank #2 at present.
JKHY shares have gained 11.7% year to date. JKHY is scheduled to report first-quarter 2025 results on Nov. 5.
Bumble BMBL has an Earnings ESP of +35.00% and carries a Zacks Rank #3 at present.
Bumble shares have lost 51.2% year to date. BMBL is slated to report third-quarter 2024 results on Nov. 6.
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