Cyberark Stock Has Doubled In A Year...Here's What Wall Street Expects Next
Cyberark Software Ltd (NASDAQ: CYBR) is scheduled to report its second quarter results before Tuesday's market open. The Estimize community is calling for the company to earn $0.13 per share on revenue of $34.84 million. The Wall Street's consensus estimate is less optimistic and are looking for the company to earn just $0.06 per share on revenue of $32.33 million.
With shares more than doubling in the past year, investors will be looking at the company's second quarter print for signs of further upside.
Here is a summary of what Wall Street's top analysts said about Israel-based Cyberark during the quarter.
William Blair: Stock Offering Follow Up
Jonathan Ho of William Blair discussed Cyberark's follow-on offering in late June in which the company sold 900,000 shares (and shareholders sold four million shares, plus up to 735,000 additional shares).
The company is expected to receive proceeds of about $52 million. In the March quarter, the company benefited from prior investments in made in sales and marketing along with increased awareness of its solutions and strong internal execution.
Ho noted that the offering's impact would only be $0.01 to his 2015 earnings per share estimate and $0.02 to his 2016 estimates.
Shares were maintained at Outperform with no assigned price target.
O'Neil: Growth Through 2019
Alan Pangindian of O'Neil Equity Research commented in a note in early July that Cyberark's product portfolio offers several solutions that can act as stand-alone and managed independently while still sharing resources and data from a common infrastructure.
As a result of the company's leading solutions, Cyberark saw its first quarter licensing revenue grow 119 percent year over year with strength across many verticals. Building on its momentum, the company continues to grow its sales force across Europe and the rest of the world.
Looking towards the second quarter, Pangindian noted that the company's earnings per share guidance of $0.06 and revenue of $32.5 million were "modestly" ahead of the consensus estimates at that time. The analyst did however note that the company's quarterly operating profit will decline sequentially due to additional costs with a ramp-up in hiring to tackle the surging demand.
In the long term, Pangindian argued that Cyberark is "well-positioned" with its "best-of-breed" solution in an under-penetrated market.
Shares were initiated with a Market Perform rating.
JPMorgan: Cyberark Faces Competition
Sterling Auty of JPMorgan commented in a note that CA, Inc. (NASDAQ: CA)'s acquisition of Xceedium raises the company's competitive landscape.
Auty noted that Cyberark "competed effectively" against Xceedium, but CA's acquisition gives Xceedium more opportunities to "show up" in competitive situations given CA's resources and backings. In addition, by adding Xceedium, CA now has a "much broader" go-to-market set of resources to effectively compete with Cyberark.
Shares of Cyberark were maintained with an Underweight rating and $48 price target.
Imperial Capital: Bearish Post Q1 Print
Michael Kim of Imperial Capital commented in a note after Cyberark's first quarter print that that the company is well positioned to leverage its broad cross-selling and up-selling opportunities with further upside from its newer offerings such as Privileged Threat Analytics.
Despite the company posting upside on both the top and bottom line to analyst's expectations, Kim argued that the company's growth expectations are already reflected in the stock's valuation that is trading at a "significant" premium to similar high-growth security peers.
Shares were maintained at In-Line with a price target raised to $57 from a previous $48. The analyst noted that his price target is 10 percent above the stock's price at that time and investors should "seek a more attractive" entry point into the stock.
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Latest Ratings for CYBR
|Nov 2016||Imperial Capital||Upgrades||In-Line||Outperform|
|Sep 2016||Cowen & Co.||Initiates Coverage on||Market Perform|
|Sep 2016||Pacific Crest||Initiates Coverage on||Sector Weight|
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