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CyberArk (CYBR) to Report Q1 Earnings: What's in the Offing?

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CyberArk Software Ltd. (CYBR - Free Report) is set to report first-quarter 2020 results on May 13.

The company expects quarterly revenues of $106-$110 million, suggesting 6-10% growth from the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $106.7 million.

The company expects non-GAAP earnings per share of 35-41 cents. The consensus mark for earnings stands at 37 cents per share, suggesting a 33.9% decline from the year-ago period’s reported number.

The company’s earnings beat estimates in all of the trailing four quarters, the average positive surprise being 30.4%.

Let’s see how things have shaped up for the upcoming announcement.

Factors at Play

CyberArk’s quarterly results are expected to reflect benefits from continued solid demand for its products, given the healthy environment of the global security market.

Also, a huge global workforce is working remotely, in an effort to contain the spread of coronavirus. However, an increasing number of people logging into employers' networks has been triggering a greater need for security. This trend might have had spurred demand for CyberArk’s products in the first quarter.

Moreover, the growing traction of Endpoint Privilege Manager within customers of all sizes and across industries is likely to have been a tailwind. Additionally, a large chunk of CyberArk’s current customer base belongs to the mid-market, prompting the company to focus on expanding its presence across small- and medium-sized businesses. Initiatives taken last year to formalize mid-market sales motion are anticipated to have benefited the top line during this period.

However, the company is likely to have continued investing in enhancing its cloud infrastructure deployments, and sales and marketing capabilities in the March-end quarter, inflating expenses and straining margins. Also, adverse foreign-currency fluctuations and macroeconomic turbulence are key concerns.

What Our Model Says

Our proven model does not predict an earnings beat for CyberArk this season.The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. 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 currently carries a Zacks Rank of 3 and has an Earnings ESP of -8.31%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.15% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Datadog Inc. (DDOG - Free Report) has an Earnings ESP of +100.00% and holds a Zacks Rank of 3 currently.

Cisco Systems Inc. (CSCO - Free Report) has an Earnings ESP of +6.29% and carries a Zacks Rank #3.

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