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CyberArk (CYBR) to Report Q4 Earnings: What's in Store?

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CyberArk Software Ltd. (CYBR - Free Report) is set to report fourth-quarter 2019 results on Feb12.

For the quarter, the company expects revenues of $125-$127 million, suggesting 15-16% growth from the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $126.46 million.

The company expects non-GAAP earnings per share of 78-82 cents. The consensus mark for earnings stands at 80 cents per share, suggesting a 10.11% decline from the year-ago period’s reported number.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 37.82%.

Let’s see how things are shaping up for the upcoming announcement.

CyberArk Software Ltd. Price and EPS Surprise

CyberArk Software Ltd. Price and EPS Surprise

CyberArk Software Ltd. price-eps-surprise | CyberArk Software Ltd. Quote

Factors at Play

In the fourth quarter of 2019, CyberArk is expected to have benefited from strength in the EMEA region where the demand for its solutions shows healthy trends.

Moreover, growing traction of Endpoint Privilege Manager within customers of all sizes and across industries is likely to have remained a tailwind.

Also, stronger momentum in contracts for SaaS, especially in Endpoint Privilege Manager, is expected to have been a tailwind in the quarter under review.

Moreover, a large chunk of CyberArk’s current customer base belongs to the mid-market, prompting the company to focus on expanding presence across small and medium-sized businesses. Initiatives taken earlier this year to formalize mid-market sales motion are expected to get positively reflected in the fourth-quarter top-line results.

However, the company is likely to have continued investing in the business in the fourth quarter, keeping expenses high and margins under pressure.

Macroeconomic headwinds in Europe are also expected to have been a concern in the quarter under review.

What Our Model Says

The proven Zacks model does not conclusively predict an earnings beat for CyberArk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CyberArk has an Earnings ESP of -0.23% and a Zacks Rank #3.

Stocks to Consider

Here are a few stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season:

Applied Materials, Inc. AMAT has an Earnings ESP of +2.89% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alteryx, Inc. AYX has an Earnings ESP of +6.49% and is a Zacks #1 Ranked stock.

Bandwidth Inc. BAND has an Earnings ESP of +2.99% and a Zacks Rank #2.

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