AudioEye Stock Before Q3 Earnings: Buy Now or Wait for Results?

AudioEye AEYE is scheduled to release its third-quarter 2024 results on Nov. 7. In the third quarter of 2024, the company expects to generate revenues between $8.85 million and $8.95 million. It also expects adjusted EBITDA between $1.85 million and $1.95 million. The company expects adjusted earnings per share in the range of 15 cents to 16 cents.For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $8.91 billion, suggesting a rise of 13.6% from the prior-year quarter’s reported figure.The Zacks Consensus Estimate for third-quarter earnings is pegged at 14 cents per share, suggesting a jump of 600% from the year-ago reported figure. The estimate has been unchanged over the past 30 days.Image Source: Zacks Investment ResearchFind the latest EPS estimates and surprises on Zacks Earnings Calendar.Earnings Surprise HistoryIn the last reported quarter, AudioEye delivered an earnings surprise of 20%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 106.67%.Audioeye, Inc. Price and EPS Surprise Audioeye, Inc. price-eps-surprise | Audioeye, Inc. QuoteEarnings WhispersOur proven model does not conclusively predict an earnings beat for AudioEye this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.AudioEye has an Earnings ESP of 0.00% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Key Factors to Influence AudioEye’s Q3 ResultsAudioEye's third-quarter 2024 performance is anticipated to have demonstrated positive momentum, driven by several strategic initiatives and market developments. The company's strong positioning in the digital accessibility market continues to be reinforced by growing regulatory requirements and increasing awareness of inclusive digital experiences. The AI-powered solutions have positioned the company favorably in this expanding market.A significant growth driver has been the company's technological advancement, particularly in AI-driven accessibility testing and remediation. The proprietary AI and machine learning algorithms have earned industry recognition for their automated identification and resolution capabilities, enabling scalable service delivery while maintaining quality standards. The strategic acquisition of ADA Site Compliance during the quarter has strengthened AudioEye's market position and expanded its service portfolio, particularly in WCAG-aligned audits and best practices.The third quarter saw several notable product launches and partnership expansions. The introduction of AudioEyeQ, a comprehensive accessibility learning platform, provides free, on-demand education courses for developers, website owners and designers. The release of the Accessibility Testing SDK represents another significant milestone, enabling developers to address accessibility issues early in the development cycle.Strategic partnerships have played a crucial role in market expansion. The enhanced collaboration with Finalsite targets the K-12 education sector, while the expanded partnership with CivicPlus focuses on the local government market. Both partnerships leverage AudioEye's AI automation capabilities and offer comprehensive managed products with legal protection.Despite these positive developments, AudioEye operates in an increasingly competitive landscape. The company faces competition from established players like Level Access, accessiBe and UserWay, as well as emerging contenders, such as Pope Tech and Access Armor. However, AudioEye's continued focus on innovation and strategic partnerships positions it favorably for sustained growth in the digital accessibility market.Price Performance & ValuationIn a remarkable display of market performance, AudioEye has emerged as a standout performer, with its stock price soaring an impressive 300.6% year to date, outperforming the broader Zacks Computer and Technology sector. This remarkable surge has catapulted the digital accessibility solutions provider into the spotlight, leaving investors and analysts pondering over the sustainability of its growth and the best strategies for approaching the stock.Year-to-Date PerformanceImage Source: Zacks Investment ResearchThe stock's dramatic ascent has not been without its share of obstacles. AudioEye's current valuation with a forward-12 month price-to-sales ratio of 6.31 is significantly higher than the Zacks Internet - Software industry average of 2.64 and may be unsustainable. There are concerns that the stock price may have outpaced the company's fundamental growth, potentially setting the stage for a correction.AEYE’s P/S F12M Ratio Depicts Stretched ValuationImage Source: Zacks Investment ResearchInvestment ThesisAudioEye presents a compelling investment opportunity ahead of third-quarter 2024 earnings, driven by growing digital accessibility regulations and increased corporate focus on ADA compliance. The company’s AI-powered solutions offer scalable, cost-effective web accessibility remediation, positioning them to capture market share in an expanding TAM. Recent partnerships and platform enhancements suggest potential revenue acceleration while improving gross margins indicate operational efficiency. However, investors should monitor customer churn rates and competitive pressures from emerging players. With their recurring revenue model and regulatory tailwinds, AEYE could see multiple expansions if it demonstrates sustained growth and a path to profitability in the third quarter.ConclusionAudioEye's expanding market presence in digital accessibility solutions and strategic AI implementations present an attractive entry point for investors ahead of third-quarter earnings results. The company's improving unit economics, expanding partnerships and potential benefits from stricter ADA enforcement could drive meaningful upside to the consensus estimate.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Audioeye, Inc. (AEYE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks