Shares of SentinelOne (S) are down 13% after the cybersecurity company issued forward guidance that disappointed analysts on Wall Street.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The Silicon Valley-based company said it broke even on a per share basis during this year’s third quarter. That was slightly worse than a $0.01 per share profit forecast among analysts. Revenue during the period totaled $210.6 million. That was better than revenue of $209.7 million that had been forecast on Wall Street. Sales were up 28% year-over-year.
In terms of guidance, SentinelOne said it expects revenue of $222 million for the current fourth quarter of the year, which appears to have disappointed analysts and investors, sending the stock tumbling in extended trading.
Growth in Recurring Revenue
SentinelOne highlighted that its annualized recurring revenue from subscription-based services increased 29% to $859.7 million during this year’s third quarter. That was slightly above analyst estimates that called for $857 million.
SentinelOne’s cybersecurity software detects malware on laptops, mobile phones, and other devices that access corporate networks. The company, which competes against CrowdStrike Holding (CRWD) and Palo Alto Networks (PANW), is in the process of building a threat-detection cybersecurity platform.
S stock has gained 5% this year.
Is S Stock a Buy?
SentinelOne (S) stock has a consensus Strong Buy rating among 21 Wall Street analysts. That ratings is based on 16 Buy and five Hold recommendations issued in the last three months. The average S price target of $29.95 implies 4.43% upside from current levels.
Read more analyst ratings on S stock
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
