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SecureWorks (SCWX) Gears Up for Q4 Earnings: What to Expect?
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SecureWorks Corporation (SCWX - Free Report) is slated to release fourth-quarter fiscal 2021 results on Mar 11.
The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $138.6 million, indicating a 2.4% year-over-year decline. The consensus mark for earnings is pinned at a penny, suggesting a 50% slump from the year-ago quarter’s earnings of 2 cents per share.
The company estimates quarterly revenues in the $138-$139 million band. Further, it expects non-GAAP earnings per share between breakeven and 2 cents.
In the last reported quarter, the company posted non-GAAP earnings per share of 8 cents compared with a penny in the year-ago quarter. Further, non-GAAP revenues inched up 0.2% year on year to $141.3 million.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
SecureWorks’ quarterly results are likely to reflect benefits from the continued solid demand for its products, given the healthy environment of the global security market.
Also, a huge global workforce is working remotely, in an effort to contain the spread of coronavirus. However, an increasing number of people logging into employers' networks has been triggering a greater need for security. This might have had spurred demand for SecureWorks’ products during the fiscal fourth quarter.
Moreover, strong adoption of the company’s cloud-native platform and higher demand for its deep security expertise are likely to have driven customer acquisition during the quarter under review.
Further, growing traction of SecureWorks’ Red Cloak Threat Detection and Response (TDR) globally is anticipated to have expanded the company’s international footprint.
In September 2020, the company acquired Delve Laboratories, which delivers cloud-based SaaS solutions powered by artificial intelligence (AI) and machine learning. The acquisition has extended the company’s product portfolio and boosted its presence in Canada.
Additionally, last September, the company partnered with Arrow Electronics (ARW) under its Global Partner Program, to facilitate the deployment of its security solutions across North America. This is likely to have driven the expansion of SecureWorks’ solid partner base.
Apart from this, a revenue shift from custom consulting and staffing type Managed Security Services (MSS) work to software-driven TDR solutions, along with a reduction in travel expenses, is expected to have driven gross margin expansion in the to-be-reported quarter.
What Our Model Says
Our proven model does not predict an earnings beat for SecureWorks this time around. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
SecureWorks currently carries a Zacks Rank of 3 (Hold) and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post earnings beats this quarter:
Sierra Metals Inc. has an Earnings ESP of +12.50% and carries a Zacks Rank of 2, currently.
FedEx Corporation (FDX - Free Report) has an Earnings ESP of +2.72% and holds a Zacks Rank of 2 at present.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
SecureWorks (SCWX) Gears Up for Q4 Earnings: What to Expect?
SecureWorks Corporation (SCWX - Free Report) is slated to release fourth-quarter fiscal 2021 results on Mar 11.
The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $138.6 million, indicating a 2.4% year-over-year decline. The consensus mark for earnings is pinned at a penny, suggesting a 50% slump from the year-ago quarter’s earnings of 2 cents per share.
The company estimates quarterly revenues in the $138-$139 million band. Further, it expects non-GAAP earnings per share between breakeven and 2 cents.
SecureWorks Corp. Price and Consensus
SecureWorks Corp. price-consensus-chart | SecureWorks Corp. Quote
In the last reported quarter, the company posted non-GAAP earnings per share of 8 cents compared with a penny in the year-ago quarter. Further, non-GAAP revenues inched up 0.2% year on year to $141.3 million.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
SecureWorks’ quarterly results are likely to reflect benefits from the continued solid demand for its products, given the healthy environment of the global security market.
Also, a huge global workforce is working remotely, in an effort to contain the spread of coronavirus. However, an increasing number of people logging into employers' networks has been triggering a greater need for security. This might have had spurred demand for SecureWorks’ products during the fiscal fourth quarter.
Moreover, strong adoption of the company’s cloud-native platform and higher demand for its deep security expertise are likely to have driven customer acquisition during the quarter under review.
Further, growing traction of SecureWorks’ Red Cloak Threat Detection and Response (TDR) globally is anticipated to have expanded the company’s international footprint.
In September 2020, the company acquired Delve Laboratories, which delivers cloud-based SaaS solutions powered by artificial intelligence (AI) and machine learning. The acquisition has extended the company’s product portfolio and boosted its presence in Canada.
Additionally, last September, the company partnered with Arrow Electronics (ARW) under its Global Partner Program, to facilitate the deployment of its security solutions across North America. This is likely to have driven the expansion of SecureWorks’ solid partner base.
Apart from this, a revenue shift from custom consulting and staffing type Managed Security Services (MSS) work to software-driven TDR solutions, along with a reduction in travel expenses, is expected to have driven gross margin expansion in the to-be-reported quarter.
What Our Model Says
Our proven model does not predict an earnings beat for SecureWorks this time around. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
SecureWorks currently carries a Zacks Rank of 3 (Hold) and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post earnings beats this quarter:
Ulta Beauty Inc. (ULTA - Free Report) has an Earnings ESP of +6.24% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sierra Metals Inc. has an Earnings ESP of +12.50% and carries a Zacks Rank of 2, currently.
FedEx Corporation (FDX - Free Report) has an Earnings ESP of +2.72% and holds a Zacks Rank of 2 at present.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>