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Okta’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 107.74%.
Let’s see how things have shaped up for Okta prior to this announcement:
Factors to Consider
The company’s third-quarter fiscal 2024 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 second quarter with 18,400 customers, adding 350 customers throughout the previous quarter despite the challenging macroeconomic environment. Customers with more than $100K in Annual Contract Value increased 19% 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 Google and Zoom is expected to have driven top-line growth in the fiscal third quarter.
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:
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OKTA Gears up to Report Q3 Earnings: What's in the Cards?
Okta, Inc. (OKTA - Free Report) is set to report its third-quarter fiscal 2024 results on Nov 29.
For the fiscal third quarter, the company anticipates non-GAAP earnings of 29-30 cents per share.
The Zacks Consensus Estimate for earnings has been unchanged at 30 cents per share over the past 30 days.
Revenues are expected in the range of $558-$560 million, indicating growth of 16% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $559.76 million, indicating an increase of 16.37% 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 107.74%.
Let’s see how things have shaped up for Okta prior to this announcement:
Factors to Consider
The company’s third-quarter fiscal 2024 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 second quarter with 18,400 customers, adding 350 customers throughout the previous quarter despite the challenging macroeconomic environment. Customers with more than $100K in Annual Contract Value increased 19% 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 Google and Zoom is expected to have driven top-line growth in the fiscal third quarter.
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:
Core & Main (CNM - Free Report) has an Earnings ESP of +3.86% and sports a Zacks Rank #1 at present. You can find the complete list of today’s Zacks #1 Rank stocks here.
Core & Main is set to announce third-quarter 2023 results on Dec 5. CNM shares are up 78.7% year to date.
Snowflake (SNOW - Free Report) currently has an Earnings ESP of +67.33% and a Zacks Rank #2.
Snowflake is set to announce third-quarter 2023 results on Nov 29. SNOW’s shares have returned 17.7% year to date.
Veeva Systems (VEEV - Free Report) presently has an Earnings ESP of +1.15% and a Zacks Rank #3.
Veeva Systems is set to announce third-quarter fiscal 2024 results on Dec 6. VEEV’s shares have returned 8.9% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.