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CyberArk Software (NASDAQ:CYBR) is set to report third-quarter 2016 results on Nov 3. Last quarter, the company posted a positive earnings surprise of 40%. Let's see how things are shaping up for this announcement.
Factors to Consider
The company posted better-than-expected second-quarter fiscal 2016 results. Also, the company’s revenues increased on a year-over-year basis, primarily due to better-than-expected demand for its privileged account security platform and its solid business model.
According to research firm, Markets and Markets, the cyber security market is expected to touch $170.21 billion by 2020 from $106.32 billion in 2015, growing at an annual rate of 9.8%. We believe that CyberArk Software is in a favorable position to tap the opportunities.
Furthermore, investments in product suite and go-to-market are the other positives for the company. CyberArk has made strategic acquisitions to boost growth. We believe that these acquisitions will not only expand CyberArk’s capabilities but its customer base as well.
However, competition from IBM Corporation (NYSE:IBM) , Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NYSE:ORCL) remains a concern.
CYBER-ARK SFTWR Price and EPS Surprise
Earnings Whispers
Our proven model does not conclusively show that CyberArk Softwareis likely to beat the Zacks Consensus Estimate in its upcoming release. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for CyberArk Softwareis 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 18 cents per share. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: CyberArk Softwarehas a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Carmike Cinemas Inc. (NASDAQ:CKEC) with Earnings ESP of +600.00% and a Zacks Rank #3 You can see the complete list of today’s Zacks #1 Rank stocks here
Methanex Corporation (NASDAQ:MEOH) with an Earnings ESP of +100.0% and a Zacks Rank #3
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