Qualys Q3 Earnings Beat: Will Upbeat Guidance Lift the Stock?

Qualys QLYS reported third-quarter 2024 non-GAAP earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate of $1.33 and came above management’s guidance of $1.28-$1.36.The bottom line also witnessed a robust improvement from the year-ago quarter’s earnings of $1.51. The robust year-over-year growth was primarily driven by higher revenues, improved efficiency and increased financial income.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Qualys’ third-quarter revenues increased 8% year over year to $153.9 million and surpassed the Zacks Consensus Estimate of $150.56 million. The year-over-year increase in the top line was achieved by leveraging the partner ecosystem.Qualys, Inc. Price, Consensus and EPS Surprise Qualys, Inc. price-consensus-eps-surprise-chart | Qualys, Inc. QuoteQuarter in DetailDuring the third quarter, sales from channel partners increased 17%, outpacing the 1% sales growth registered in direct selling. Revenue contribution mix from channel partners was 47% in the third quarter, while direct selling accounted for the remaining 53%.Geography-wise, sales in the United States grew 5% year over year and contributed approximately 58% to the third-quarter total revenues. Accounting for the remaining 42% of second-quarter total revenues, international sales increased 14%.Qualys’ net dollar expansion rate on a constant currency basis for the third quarter was 103%.QLYS’ non-GAAP gross profit increased 8% year over year to $127.8 million, while the non-GAAP gross margin remained flat at 83% in the third quarter. Non-GAAP operating income grew 5% to $66.1 million, while the non-GAAP operating margin contracted 100 basis points (bps) to 43%, mainly due to an increase in sales and marketing expense.Adjusted EBITDA for the third quarter rose 1% to $69.7 million, while adjusted EBITDA margin contracted 300 bps to 45%.Balance SheetQualys ended the quarter with cash and cash equivalents and marketable securities of $386.3 million. During the third quarter, the company generated operating cash flow and free cash flow of $61 million and $57.6 million, respectively.GuidanceFor the fourth quarter, Qualys expects revenues between $154.5 million and $157.5 million, indicating year-over-year growth of 7-9%. It projects non-GAAP earnings in the range of $1.28-$1.38.For 2024, QLYS expects revenues in the range of $602.9-$605.9 million, up from the previous guidance of $597.5-$601.5 million. The company projects its non-GAAP earnings per share in the range of $5.81-$5.91, up from the previous guidance of $5.46-$5.62.Qualys’ Zacks Rank & Stocks to ConsiderQualys currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are Shopify SHOP, Fortinet FTNT and CyberArk CYBR. While Shopify and CyberArk sport Zacks Rank #1 (Strong Buy) each, FTNT carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.The consensus mark for Shopify’s 2024 earnings has been revised upward by 13 cents to $1.12 per share over the past 90 days, indicating a 51.31% year-over-year increase. The long-term expected earnings growth rate for the stock stands at 39.2%. Shares of SHOP have gained 2.7% in the year-to-date period.The Zacks Consensus Estimate for Fortinet’s 2024 earnings has been revised upward by a penny to $2.01 per share in the past 60 days, indicating an increase of 23.31% on a year-over-year basis. It has a long-term earnings growth expectation of 16.3%. Shares of FTNT have jumped 40.8% in the year-to-date period.The Zacks Consensus Estimate for CyberArk’s fiscal 2024 earnings has been revised upward by a penny to $2.30 per share in the past seven days, suggesting a year-over-year increase of 105.4%. It has a long-term earnings growth expectation of 33.4%. Shares of CYBR have plunged 21.3% in the year-to-date period.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want 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 Fortinet, Inc. (FTNT): Free Stock Analysis Report Qualys, Inc. (QLYS): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Shopify Inc. (SHOP): 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