SolarWinds Stock (NYSE:SWI), Trade Ideas

SolarWinds

SolarWinds Corp is a provider of information technology (IT), and management software. Company offers full-stack observability solutions. The company's business is focused on building products that enable technology professionals and leaders to securely monitor and manage the performance of their IT environments, whether on-premises, in the cloud or in hybrid deployments. The products offered are designed to monitor and manage networks, systems, databases and applications across on-premises, multi-cloud and hybrid IT environments without the need for customization or professional services.

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SWI stock up after reporting Q4 FY23 revenue growth of 6%, beating consensus. Maintenance revenue flat, subscription revenue up 36.3%, EPS beat.

Why Is SolarWinds Stock Trading Higher Thursday?

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Truist Securities analyst Miller Jump maintained GitLab Inc (NASDAQ: GTLB) with a Buy and raised the 

GitLab&#39;s Surprising Quarter: What Are Analysts Whispering About Its Future?

SolarWinds Corp (NYSE: SWI) reported a third-quarter FY23 revenue growth of 6% year-on-year to $189.6 million, beating the consensus of $183.7 million. 

SolarWinds Shares Jump Following Q3 Results and Optimistic Full-Year Forecasts

SolarWinds Corp

Latham Group Inc

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<h3>Gainers</h3>
<ul>
<li>XTI Aerospace (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XTIA#NASDAQ">XTIA</a>) shares rose 86.9% to $3.85 during Tuesday's pre-market session. The company's market cap stands at $37.6 million. </li>
<li>Sobr Safe (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOBR#NASDAQ">SOBR</a>) shares moved upwards by 24.54% to $0.4. The market value of their outstanding shares is at $7.3 million. </li>
<li>Sequans Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQNS#NYSE">SQNS</a>) shares increased by 10.22% to $0.39. The company's market cap stands at $23.8 million. </li>
<li>SMX (Security Matters) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMX#NASDAQ">SMX</a>) stock rose 6.76% to $0.14. The market value of their outstanding shares is at $3.9 million. </li>
<li>Inuvo (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/INUV#AMEX">INUV</a>) stock increased by 5.87% to $0.36. The company's market cap stands at $49.7 million. </li>
<li>BlackLine (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BL#NASDAQ">BL</a>) stock increased by 5.85% to $67.75. The company's market cap stands at $4.1 billion. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>HeartCore Enterprises (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTCR#NASDAQ">HTCR</a>) stock decreased by 16.0% to $1.0 during Tuesday's pre-market session. The company's market cap stands at $20.8 million. </li>
<li>Semilux International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SELX#NASDAQ">SELX</a>) shares fell 11.56% to $1.53. The market value of their outstanding shares is at $64.4 million. </li>
<li>SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) shares fell 8.27% to $11.66. The market value of their outstanding shares is at $1.9 billion. </li>
<li>MicroStrategy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) stock fell 7.63% to $1512.0. The company's market cap stands at $25.6 billion. </li>
<li>GRIID Infrastructure (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRDI#NASDAQ">GRDI</a>) stock fell 7.41% to $1.25. The market value of their outstanding shares is at $82.0 million. </li>
<li>Argo Blockchain (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARBK#NASDAQ">ARBK</a>) stock decreased by 6.53% to $1.72. The market value of their outstanding shares is at $99.2 million. 
See Also: <a href="http://www.benzinga.com/money/tech-stocks/" title="www.benzinga.com/money/tech-stocks/">www.benzinga.com/money/tech-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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12 Information Technology Stocks Moving In Tuesday's Pre-Market Session

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SolarWinds shares are trading higher after the company announced a special cash dividend of $1.00 per share, payable on April 15, 2024.

Dividends

SolarWinds Announces Special Cash Dividend Of $1.00 Per Share, Payable On April 15, 2024; Aggregate Payment Will Be Approximately $168M

SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $13.75, a high estimate of $15.00, and a low estimate of $13.00. Surpassing the previous average price target of $12.00, the current average has increased by 14.58%.
<img src="https://www.benzinga.com/files/images/story/2024/1709737273_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The standing of SolarWinds among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Miller Jump</td>
<td>Truist Securities</td>
<td>Announces</td>
<td>Hold</td>
<td>$13.00</td>
<td>-</td>
</tr>
<tr>
<td>Terry Tillman</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$13.00</td>
<td>$11.00</td>
</tr>
<tr>
<td>Matthew Hedberg</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$15.00</td>
<td>$13.00</td>
</tr>
<tr>
<td>Pinjalim Bora</td>
<td>JP Morgan</td>
<td>Announces</td>
<td>Neutral</td>
<td>$14.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SolarWinds. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of SolarWinds compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into SolarWinds's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/SWI/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on SolarWinds analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Get to Know SolarWinds Better</h2>
SolarWinds Corp is a provider of information technology (IT), and management software. Company offers full-stack observability solutions. The company's business is focused on building products that enable technology professionals and leaders to securely monitor and manage the performance of their IT environments, whether on-premises, in the cloud or in hybrid deployments. The products offered are designed to monitor and manage networks, systems, databases and applications across on-premises, multi-cloud and hybrid IT environments without the need for customization or professional services.
<h3>SolarWinds's Financial Performance</h3>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Over the 3 months period, SolarWinds showcased positive performance, achieving a revenue growth rate of 5.92% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: SolarWinds's net margin excels beyond industry benchmarks, reaching -0.29%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): SolarWinds's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.04%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): SolarWinds's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.02%, the company showcases efficient use of assets and strong financial health.
Debt Management: SolarWinds's debt-to-equity ratio is below the industry average at 0.88, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

What Analysts Are Saying About SolarWinds Stock

Truist Securities analyst Miller Jump assumes SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) with a Hold rating and announces Price Target of $13.

Initiation

Truist Securities Assumes SolarWinds at Hold, Announces Price Target of $13

Truist Securities analyst Terry Tillman maintains SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) with a Hold and raises the price target from $11 to $13.

Truist Securities Maintains Hold on SolarWinds, Raises Price Target to $13-Report released on 8th February 2024

RBC Capital analyst Matthew Hedberg maintains SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) with a Sector Perform and raises the price target from $13 to $15.

RBC Capital Maintains Sector Perform on SolarWinds, Raises Price Target to $15

SolarWinds Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) stock climbed after it reported a fourth-quarter FY23 revenue growth of 6% year-on-year to $198.14 million, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/02/b37004967/solarwinds-announces-fourth-quarter-and-full-year-2023-results" rel="noreferrer noopener">consensus of $190.44 million</a>.&nbsp;
Adjusted EPS of $0.24 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $0.21</a>.
Maintenance revenue remained flat Y/Y at $115.1 million. Subscription revenue climbed 36.3% Y/Y to $67.7 million, while License revenue declined 31.5% to $15.3 million.
The adjusted gross margin was flatish at 90.8%, and the adjusted EBITDA margin increased by 410 bps to 43.9%.
SolarWinds held $289.2 million in cash and equivalents.
CEO Sudhakar Ramakrishna said, &#8220;Our year-over-year growth in full-year revenue, total ARR, subscription revenue, and adjusted EBITDA represent significant progress towards the priorities we set forth at the beginning of 2023, including our subscription-first strategy, continued focus on customer success and retention, innovation on the SolarWinds Platform, and strong operating discipline.&#8221;
Outlook:&nbsp;SolarWinds sees first-quarter revenue of $187.0 million &#8211; $192.0 million, versus the consensus of $191.80 million. It sees Q1 adjusted EPS of $0.20 &#8211; $0.22 versus the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">consensus of $0.22</a>.
SolarWinds expects FY24 revenue of $771 million &#8211; $786 million versus the consensus of $779.74 million.
SolarWinds expects FY24 adjusted EPS outlook of $0.95 &#8211; $1.00 versus the consensus of $0.95.
Price Action:&nbsp;SWI shares traded higher by 4.83% at $13.03 premarket at the last check Thursday.

SolarWinds Corp shares are trading higher after the company reported better-than-expected first-quarter financial results and issued guidance.

Financial&nbsp;Outlook&nbsp;for&nbsp;First Quarter&nbsp;of 2024
SolarWinds&#39; management currently expects to achieve the following results for the&nbsp;first quarter&nbsp;of 2024:
<ul>
<li>Total revenue in the range of&nbsp;$187&nbsp;to&nbsp;$192 million, representing growth of approximately&nbsp;2%&nbsp;over the&nbsp;first quarter&nbsp;of 2023 total revenue at the midpoint of the range.</li>
<li>Adjusted EBITDA of approximately&nbsp;$81.5&nbsp;to&nbsp;$84.5 million, representing growth of approximately&nbsp;7%&nbsp;over the&nbsp;first quarter&nbsp;of 2023 adjusted EBITDA at the midpoint of the range.</li>
<li>Non-GAAP diluted earnings per share of&nbsp;$0.20&nbsp;to&nbsp;$0.22.</li>
<li>Weighted average outstanding diluted shares of approximately 171.3 million.</li>
</ul>
Financial&nbsp;Outlook&nbsp;for Full Year of 2024
SolarWinds&#39; management currently expects to achieve the following results for the full year of 2024:
<ul>
<li>Total revenue in the range of&nbsp;$771&nbsp;to&nbsp;$786 million, representing growth of approximately&nbsp;3%&nbsp;over the full year of 2023 total revenue at the midpoint of the range.</li>
<li>Adjusted EBITDA of approximately&nbsp;$350&nbsp;to&nbsp;$360 million, representing growth of approximately&nbsp;8%&nbsp;over the full year of 2023 adjusted EBITDA at the midpoint of the range.</li>
<li>Non-GAAP diluted earnings per share of&nbsp;$0.95&nbsp;to&nbsp;$1.00.</li>
<li>Weighted average outstanding diluted shares of approximately 173.2 million.</li>
</ul>

SolarWinds Corp Expects Q1 Revenue of $187M-$192M Vs $191.8M Est, Adj EPS $0.20-$0.22 Vs $0.22 Est, FY24 Revenue of $771M-$786M Vs $779.74M Est, Adj EPS $0.95-$1.00 Vs $0.95 Est

SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) reported quarterly earnings of $0.24 per share which beat the analyst consensus estimate of $0.21 by 14.29 percent. This is a 26.32 percent increase over earnings of $0.19 per share from the same period last year. The company reported quarterly sales of $198.14 million which beat the analyst consensus estimate of $190.43 million by 4.05 percent. This is a 5.92 percent increase over sales of $187.07 million the same period last year.

SolarWinds Q4 Adj EPS $0.24 Beats $0.21 Estimate, Sales $198.14M Beat $190.43M Estimate

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Earnings Scheduled For February 8, 2024

SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) is set to give its latest quarterly earnings report on Thursday, 2024-02-08. Here's what investors need to know before the announcement.
Analysts estimate that SolarWinds will report an earnings per share (EPS) of $0.21. 
SolarWinds bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Past Earnings Performance</h3>
Last quarter the company beat EPS by $0.05, which was followed by a 1.74% increase in the share price the next day.
Here's a look at SolarWinds's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.18</td>
<td>0.17</td>
<td>0.16</td>
<td>0.20</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.23</td>
<td>0.21</td>
<td>0.20</td>
<td>0.19</td>
</tr>
<tr>
<td>Price Change %</td>
<td>1.74%</td>
<td>0.93%</td>
<td>-0.46%</td>
<td>-3.46%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1707332458_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of SolarWinds were trading at $12.39 as of February 06. Over the last 52-week period, shares are up 18.43%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/SWI/earnings">To track all earnings releases for SolarWinds visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

A Preview Of SolarWinds's Earnings

JP Morgan analyst Pinjalim Bora initiates coverage on SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) with a Neutral rating and announces Price Target of $14.

JP Morgan Initiates Coverage On SolarWinds with Neutral Rating, Announces Price Target of $14

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Watching MSCI Inc.; Spruce Point Capital Management Announces Investment Opinion Entitled "Indexing The Short Case Against MSCI"; Says The Co Could Face Up To 55%-65% Long-Term Downside Risk, Or $190.00–$244.00 Per Share

Truist Securities&nbsp;analyst Miller Jump maintained&nbsp;GitLab Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gtlb#NASDAQ">GTLB</a>) with a Buy and raised the&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/quote/GTLB/analyst-ratings" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">price target from $65 to $70</a>.
GTLB produced its third consecutive&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/23/12/36090695/gitlab-stock-is-trading-higher-tuesday-whats-going-on" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">beat-and-raise quarter</a>, driven by solid execution and an improving demand backdrop.&nbsp;
The quarter saw stabilizing enterprise demand as their platform vision for DevSecOps resonates in the market, and customers are consolidating tools onto their solution.&nbsp;
The company expects momentum to continue with improved visibility into their pipeline as they progress through the renewal-heavy 4Q. Given the momentum, Jump noted that the guidance may prove conservative as early tailwinds from multiple growth drivers take hold.
Jump projected 4Q revenue and EPS of $158 million (prior $150 million) and $0.08.
Scotiabank&nbsp;analyst Nick Altmann maintained a Buy rating on Gitlab and raised the price target from $60 to $70.
The 6% upside to consensus estimates, a bounce-back in bookings, improvements in seat contraction, and a guidance raise of 4% led to shares moving higher after hours.
GTLB did not provide FY25 guidance but did note they expect a $10 million - $20 million tailwind from the Premium pricing changes, which seems conservative, and FY25 estimates remain one of the most topical debates. Macro-wise, SMB and MM worsened slightly, though win rates and contraction improved.&nbsp;
Ultimate is 43% of ARR, which has yet to meaningfully change in the last several quarters. However, management called out Dedicated deals being a focus, and GTLB Duo can help foster more upsell activity in FY25.&nbsp;
Altmann projected a 4Q revenue of $157 million.
RBC Capital&nbsp;analyst Matthew Hedberg maintained GitLab with an Outperform and raised the price target from $62 to $70.
Gitlab delivered a strong beat-and-raise quarter despite a mixed macro environment. Hedberg noted the model sets up well for additional upside from the Premium tier price increase, Code Suggestion, Gitlab Dedicated, and free-to-pay conversion.&nbsp;
Hedberg projected 4Q revenue and EPS of $157.5 million (prior $149 million) and $0.08 (prior $0.00).
Needham&nbsp;analyst Mike Cikos maintained a Hold rating.
GitLab reported 3Q earnings, with results ahead of guidance and expectations.&nbsp;
Management commentary included more focused competitive remarks versus&nbsp;Microsoft Corp&#39;s&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/msft#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MSFT</a>) GitHub and&nbsp;Atlassian Corp&#39;s&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/team#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TEAM</a>) Jira.&nbsp;
The most significant incremental takeaway from the earnings call was management highlighting that the Premium SKU price increase would contribute $10 million to $20 million in revenue in FY25. While the company discussed it was early in the planning process for next year, the $10 million - $20 million benefit equates to 1.7%-3.5% of incremental growth next year - a far cry from buy-side expectations for ~10 points ($50 million-plus).
Cikos projected 4Q revenue and EPS of $157.6 million and $0.08 (prior $0.01).
Cantor Fitzgerald&nbsp;analyst Jonathan Ruykhaver reiterated an Overweight and increased the price target from $55 to $65.
GitLab delivered a solid 3Q performance, exceeding FactSet consensus estimates for revenue, operating income, EPS, and adjusted free cash flow.&nbsp;
As stated in his recent initiation report, high-profile hacks such as&nbsp;SolarWinds Corp&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/swi#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SWI</a>) in 2020 and Log4j vulnerability in 2021 are daily reminders of the criticality of securing the software supply chain, a core function GitLab is in an ideal position to tackle.
Ruykhaver projected 4Q revenue and EPS of $157.4 million (prior $149 million) and $0.08 (prior $0.03).
Price Action:&nbsp;GTLB shares traded higher by 11.10% at $60.42 on the last check Tuesday.

GitLab's Surprising Quarter: What Are Analysts Whispering About Its Future?

SolarWinds Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/swi#NYSE">SWI</a>) reported a third-quarter FY23 revenue growth of 6% year-on-year to $189.6 million, beating the&nbsp;<a href="https://www.benzinga.com/pressreleases/23/11/b35560711/solarwinds-announces-third-quarter-2023-results" target="_blank">consensus of $183.7 million</a>.&nbsp;
Adjusted EPS of $0.23 beat the consensus of $0.18.
Maintenance revenue grew by 1.8% Y/Y to $116.4 million. Subscription revenue climbed 39.1% Y/Y to $58.8 million, while License revenue declined 36.7% to $14.4 million.
The adjusted gross margin was flatish at 90.8%, and the adjusted EBITDA margin increased by 570 bps to 44.9%.
SolarWinds held $235.2 million in cash and equivalents.
Also Read:&nbsp;<a href="https://www.benzinga.com/m-a/23/10/35467342/solarwinds-corp-reportedly-eyes-potential-sale-stock-soars" target="_blank">SolarWinds Corp Reportedly Eyes Potential Sale, Stock Soars</a>
CEO Sudhakar Ramakrishna said, &quot;Our subscription-first strategy continues to yield strong results while our product teams continue to deliver multi-cloud solutions on the SolarWinds Platform designed to improve customer productivity and reduce their costs.&quot;
Outlook:&nbsp;SolarWinds sees Q4 revenue of $188.5 million-$192.5 million, versus the consensus of $189.8 million.
It sees Q4 adjusted EPS of $0.20-$0.22 versus the consensus of $0.20.
SolarWinds increased FY23 revenue to $749 million-$753 million (<a href="https://www.benzinga.com/news/earnings/23/08/33550632/solarwinds-stock-soars-after-q2-performance-heres-why" target="_blank">prior $740 million-$748 million</a>) versus the consensus of $744.51 million.
SolarWinds raised the FY23 adjusted EPS outlook to $0.83-$0.85 (prior $0.76-$0.79) versus the consensus of $0.78.
Price Action:&nbsp;SWI shares traded higher by 9.02% at $10.27&nbsp;at the last check Thursday.
Now Read:&nbsp;<a href="https://www.benzinga.com/news/23/11/35556013/jamie-dimon-warns-of-potential-6-25-rate-hike-from-fed-amid-sticky-inflation-quantitative-tightening">Jamie Dimon Warns Of Potential 6.25% Rate Hike From Fed Amid Sticky Inflation: Quantitative Tightening &#39;Will Rattle The Markets&#39;</a>

Financial&nbsp;Outlook&nbsp;for&nbsp;Fourth Quarter&nbsp;of 2023
SolarWinds&#39; management currently expects to achieve the following results for the&nbsp;fourth quarter&nbsp;of 2023:
<ul>
<li>Total revenue in the range of&nbsp;$188.5&nbsp;to&nbsp;$192.5 million, representing growth of approximately&nbsp;2%&nbsp;as compared to the&nbsp;fourth quarter&nbsp;of 2022 total revenue at the midpoint of the range.</li>
<li>Adjusted EBITDA of approximately&nbsp;$80.5&nbsp;to&nbsp;$82.5 million, representing growth of approximately&nbsp;9%&nbsp;over the&nbsp;fourth quarter&nbsp;of 2022 adjusted EBITDA at the midpoint of the range.</li>
<li>Non-GAAP diluted earnings per share of&nbsp;$0.20&nbsp;to&nbsp;$0.22.</li>
<li>Weighted average outstanding diluted shares of approximately 167.4 million.</li>
</ul>
Financial&nbsp;Outlook&nbsp;for Full Year of 2023
SolarWinds&#39; management currently expects to achieve the following results for the full year of 2023:
<ul>
<li>Total revenue in the range of&nbsp;$749&nbsp;to&nbsp;$753 million, representing growth of approximately&nbsp;4%&nbsp;over the full year of 2022 total revenue at the midpoint of the range.</li>
<li>Adjusted EBITDA of approximately&nbsp;$322&nbsp;to&nbsp;$324 million, representing growth of approximately&nbsp;15%&nbsp;over the full year of 2022 adjusted EBITDA at the midpoint of the range.</li>
<li>Non-GAAP diluted earnings per share of&nbsp;$0.83&nbsp;to&nbsp;$0.85.</li>
<li>Weighted average outstanding diluted shares of approximately 166.4 million.</li>
</ul>

SolarWinds Corp Expects Q4 Revenue of $188.5M-$192.5M Vs $189.8M Est, Adj EPS $0.20-$0.22 Vs $0.2 Est; FY23 Revenue $749M-$753M (Prior $740M-$748M) Vs $744.51M Est, Adj EPS $0.83-$0.85 (Prior $0.76-$0.79) Vs $0.78 Est

SolarWinds (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWI#NYSE">SWI</a>) reported quarterly earnings of $0.23 per share which beat the analyst consensus estimate of $0.18 by 27.78 percent. This is a 15 percent increase over earnings of $0.20 per share from the same period last year. The company reported quarterly sales of $189.59 million which beat the analyst consensus estimate of $183.70 million by 3.21 percent. This is a 5.68 percent increase over sales of $179.40 million the same period last year.

SolarWinds Q3 Adj EPS $0.23 Beats $0.18 Estimate, Sales $189.59M Beat $183.70M Estimate

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Earnings Scheduled For November 2, 2023

SolarWinds Corp (SWI) is near the top in its industry group according to InvestorsObserver. SWI gets an overall rating of 61. That means it scores higher than 61 percent of stocks. SolarWinds Corp gets a 79 rank in the Software - Infrastructure industry. Software - Infrastructure is number 44 out of 148 industries. SWI has

Should Software - Infrastructure Stock SolarWinds Corp (SWI) Be in Your Portfolio Monday?

Despite macroeconomic challenges, the software industry has shown resilience through consistent growth, innovation, and adaptability to market demands and emerging technologies. Therefore, fundamentally strong software stocks Splunk (SPLK), SolarWinds (SWI) and eGain (EGAN) might be ideal additions to your portfolio. Read on... The software industry's future looks bright thanks to technological advancements, cloud-based service demand, AI advancements, and global digital transformation initiatives across industries.
Given the industry's growth prospects, fundamentally strong software stocks Splunk Inc. (<a href="https://stocknews.com/stock/SPLK/">SPLK</a>), SolarWinds Corporation (<a href="https://stocknews.com/stock/SWI/">SWI</a>) and eGain Corporation (<a href="https://stocknews.com/stock/EGAN/">EGAN</a>) might be worth buying.
Before delving deeper into their fundamentals, let's discuss what's happening in the software industry.
According to a Forrester analysis of vendor financial reports, secondary research sources, and trade association data, global commercial software spending will increase by more than <a href="https://www.ciodive.com/news/SaaS-drives-software-spend-in-cloud-Forrester/702473/#:~:text=Dive%20Brief:,sources%20and%20trade%20association%20data.">12% annually for the next few years, reaching $1.4 trillion in 2027</a>.
Additionally, the global software market is estimated to reach $858.10 billion by 2028, growing at a <a href="https://www.statista.com/outlook/tmo/software/worldwide">5.3% CAGR</a>. Also, the US software market revenue is expected to hit $353.50 billion this year. The sector's revenue is expected to grow at a <a href="https://www.statista.com/outlook/tmo/software/united-states">4.1% CAGR</a> over the next five years to $414.70 billion by 2028.
Investors' interest in software stocks is evident from the iShares Expanded Tech-Software Sector ETF's (<a href="https://stocknews.com/stock/IGV/">IGV</a>) 47.1% gains over the past nine months.
Let's analyze the fundamentals of the three featured software stocks.
Splunk Inc. (<a href="https://stocknews.com/stock/SPLK/">SPLK</a>)
SPLK develops, markets, and sells cloud services and licensed software solutions internationally. The company provides unified security and observability platform, including Splunk Security and Splunk Observability. Also, it offers application programming interfaces, software development kits, and other interfaces.
SPLK's trailing-12-month levered FCF margin of 25.23% is 177.3% higher than the industry average of 9.10%. Its trailing-12-month <a href="https://www.investopedia.com/terms/r/return_on_total_assets.asp#:~:text=The%20ROTA%20metric%20can%20be,it%20should%20be%20in%20reality.">ROTA</a> of 1.97% is 144.6% higher than the industry average of 0.80%.
SPLK's total revenues increased 14.8% year-over-year to $1.07 billion in the third quarter that ended October 31, 2023. Its gross profit grew 17.8% year-over-year to $857.38 million.
In addition, the company's net income came in at $96.85 million or $0.55, per share, compared to a net loss of $32.62 million or $0.20 per share in the previous-year quarter.
Analysts expect SPLK's revenue to increase 10.8% year-over-year to $4.44 billion for the year ending January 2025. Its EPS is expected to grow 11.5% year-over-year to $4.79 for the same period. It is expected to surpass EPS in all four trailing quarters. The stock has gained 82% over the past nine months to close the last trading session at $154.42.
SPLK's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
SPLK has an A grade for Growth and a B for Quality. Within the B-rated <a href="https://stocknews.com/category/software-saas/">Software – SAAS</a> industry, it is ranked #4 out of 24 stocks. To see additional POWR Ratings for Value, Stability, Momentum and Sentiment for SPLK, <a href="https://stocknews.com/stock/SPLK/">click here</a>.
SolarWinds Corporation (<a href="https://stocknews.com/stock/SWI/">SWI</a>)
SWI provides information technology (IT) management software products. The company offers a portfolio of solutions to technology professionals for monitoring, managing, and optimizing networks, systems, desktops, applications, storage, databases, website infrastructures, and IT service desks.
SWI's trailing-12-month EBIT margin of 22.56% is 376.4% higher than the 4.74% industry average. Its trailing-12-month EBITDA margin of 33.39% is 270.8% higher than the 9.01% industry average.
SWI's total revenue for the fiscal fourth quarter, which ended on December 31, 2023, rose 5.9% year-over-year to $198.14 million. The company's non-GAAP operating income increased 21.4% over the year-ago quarter to $81.70 million. Moreover, its non-GAAP net income and non-GAAP EPS increased 30.8% and 26.3% year-over-year to $39.48 million and $0.24, respectively.
The consensus revenue came in at $779.67 million for the fiscal year ending December 2024 represents a 2.8% increase year-over-year. Its EPS is expected to grow 9.9% year-over-year to $0.97 for the same period. It is expected to surpass EPS in all four trailing quarters. SWI's shares have gained 52.6% past nine months to close the last trading session at $13.18.
It's no surprise that SWI has an overall A rating, equating to a Strong Buy in our POWR Ratings system. It has a B grade for Value, Growth, Sentiment and Stability. It is ranked #3 out of 43 stocks in the B-rated <a href="https://stocknews.com/category/software-business/">Software - Business</a> industry.
Beyond what is stated above, we've also rated SWI for Momentum and Quality. Get all SWI ratings <a href="https://stocknews.com/stock/SWI/">here</a>.
eGain Corporation (<a href="https://stocknews.com/stock/EGAN/">EGAN</a>)
EGAN specializes in developing, licensing, implementing, and supporting customer service infrastructure software solutions. Its main offering is the Knowledge Hub, a unified solution that automates, augments, and orchestrates customer engagement. EGAN provides subscription services for cloud-based access to their software and offers professional services.
EGAN's trailing-12-month ROCE of 10.94% is 449.2% higher than the industry average of 1.99%. Its 7.33% trailing-12-month net income margin is 229.2% higher than the 2.23% industry average.
For the fiscal second quarter ended December 31, 2023, EGAN reported total revenue of $23.82 million. Its gross profit came in at $16.83 million. In addition, the company's net income came in at $2.19 million, compared to a loss of $104 thousand in the previous-year quarter. Also, its earnings per share came in at $0.07 and adjusted EBITDA increased 71.9% year-over-year to $3.77 million.
Street expects EGAN's revenue to come in at $92.81 million for the year ending June 2024. Its EPS is expected to grow 22% year-over-year to $0.31 for the same period. It is expected to surpass EPS in all four trailing quarters. Shares of EGAN have gained 2.8% intraday to close the last trading session at $5.94.
EGAN has an overall A rating, equating to a Strong Buy in our POWR Ratings system.
EGAN's is ranked #2 out of 131 stocks in the <a href="https://stocknews.com/category/software-application/">Software - Application</a> industry. It has an A grade for Value and Quality. To see additional EGAN's ratings for Growth, Stability, Sentiment and Momentum, <a href="https://stocknews.com/stock/EGAN/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
SPLK shares were trading at $154.54 per share on Tuesday afternoon, up $0.12 (+0.08%). Year-to-date, SPLK has gained 1.44%, versus a 4.16% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rashmi Kumari</h2> <img src='https:/wp-content/uploads/2022/10/Rashmi-Kumari_headshot_2-1.jpg' style="float:left; padding:5px;width:125px;">Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.<a href="https://stocknews.com/authors/?author=rashmi-kumari">More...</a>The post <a href=https://stocknews.com/news/splk-swi-egan-3-must-buy-software-stock-picks-for-2024/>3 Must-Buy Software Stock Picks for 2024</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Must-Buy Software Stock Picks for 2024

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SolarWinds Stock (NYSE:SWI), Trade Ideas