The Beats
To determine possible positive surprises we look for companies that have the following characteristics: 1. Large positive deltas vs. Wall Street 2. Significant upward revisions momentum into the report 3. A long history of beating 4. A long history of Estimize accuracy vs. the Street
CyberArk Software (CYBR)
Information Technology – Software | Reports August 7, after the close.
The Estimize community is looking for earnings per share (EPS) of $0.29 when CyberArk reports on Tuesday, revised upward by 19% in the last 3 months and 19% higher than Wall Street’s $0.24. Revenues are also expected to come in higher at $75.5M as compared to the sell side’s consensus of $72.9M. Year-over-year (YoY) EPS and revenue growth are expected to come in healthy at 37% and 31%, respectively. This is a name that tends to beat the Estimize consensus 93% of the time on EPS and 93% on revenues, and that Estimize is more accurate than Wall Street on 93% of the time on EPS and 93% on Revenue.
This cybersecurity name continues to benefit from widespread data breaches, as corporations and governments increase spending on software to prevent future instances. In addition to improving EPS and revenue growth, the Estimize community also expects License Revenue to grow 23% YoY to $37.2M. Increased demand in the space has lead to CyberArk ramping up its acquisition strategy, most recently with the purchase of cloud security provider, Valuative, earlier this year. Also expected to increase the top-line is the CyberArk Marketplace, launched in Q2. According to the press release, this is “the industry’s broadest and deepest portfolio of integrations with a privileged access security solution. The CyberArk Marketplace delivers unprecedented simplicity and speed for security and IT operations teams to extend the benefits of securing privileged access across the enterprise.”
New Relic (NEWR)
Information Technology – Internet & Software Services | Reports August 7, after the close.