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The consensus mark for second-quarter 2024 earnings is pegged at 19 cents per share, remaining unchanged in the past 30 days.
Quarterly earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same on one occasion, the average surprise being 501.65%.
Let’s see how things have shaped up for this announcement.
OSPN’s second-quarter performance is expected to have benefited from strong renewals and expansion contracts and increased demand for cloud-based solutions.
The company’s renewals team performed well by closing several delayed renewals earlier than expected, boosting revenue. This trend is expected to have persisted as ONESPAN continues to benefit from existing security customers who are expanding their contracts, particularly with high value anti-fraud solutions.
ONESPAN has seen significant growth in demand for its cloud-based authentication solutions, such as OCA. It is likely to have continued benefiting from this trend as organizations increasingly prioritize cloud-based security solutions. This demand is evidenced by notable contracts, including a new seven-figure Annual Contract Value (ACV) contract and expansions of existing contracts.
Subscription revenues appreciated 34% year over year in the first quarter of 2024, driven by the increased demand for cloud-based authentication solutions and other security subscriptions. The continued transition from perpetual maintenance to subscription models is expected to have boosted recurring revenue streams in the to-be-reported quarter.
ONESPAN’s cloud-based solutions, particularly in the Digital Agreements business unit, saw significant growth. Subscription revenue in this segment grew by 33% in the first quarter of 2024. As more customers transition to SaaS and subscription models, this trend is expected to have further driven revenue growth.
With the increasing focus on security and fraud prevention, ONESPAN's anti-fraud solutions continue to be highly valued by customers. This ongoing demand is likely to have driven further growth in the Security Solutions business unit.
Expanding International footprint is expected to have been a tailwind. The APAC region delivered its strongest quarter in terms of year-over-year growth in more than three years. Continued strong performance in this region and other geographies is likely to have contributed positively to overall revenue growth.
What Our Model Says
Per the Zacks model, 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. But that’s not the case here.
ONESPAN has an Earnings ESP of +0.00% and a Zacks Rank #3 (Hold) currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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ONESPAN (OSPN) to Report Q2 Earnings: What's in the Cards?
ONESPAN (OSPN - Free Report) is slated to release its second-quarter 2024 results on Aug 1.
The consensus mark for second-quarter 2024 earnings is pegged at 19 cents per share, remaining unchanged in the past 30 days.
Quarterly earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same on one occasion, the average surprise being 501.65%.
Let’s see how things have shaped up for this announcement.
ONESPAN INC Price and EPS Surprise
ONESPAN INC price-eps-surprise | ONESPAN INC Quote
Factors to Note
OSPN’s second-quarter performance is expected to have benefited from strong renewals and expansion contracts and increased demand for cloud-based solutions.
The company’s renewals team performed well by closing several delayed renewals earlier than expected, boosting revenue. This trend is expected to have persisted as ONESPAN continues to benefit from existing security customers who are expanding their contracts, particularly with high value anti-fraud solutions.
ONESPAN has seen significant growth in demand for its cloud-based authentication solutions, such as OCA. It is likely to have continued benefiting from this trend as organizations increasingly prioritize cloud-based security solutions. This demand is evidenced by notable contracts, including a new seven-figure Annual Contract Value (ACV) contract and expansions of existing contracts.
Subscription revenues appreciated 34% year over year in the first quarter of 2024, driven by the increased demand for cloud-based authentication solutions and other security subscriptions. The continued transition from perpetual maintenance to subscription models is expected to have boosted recurring revenue streams in the to-be-reported quarter.
ONESPAN’s cloud-based solutions, particularly in the Digital Agreements business unit, saw significant growth. Subscription revenue in this segment grew by 33% in the first quarter of 2024. As more customers transition to SaaS and subscription models, this trend is expected to have further driven revenue growth.
With the increasing focus on security and fraud prevention, ONESPAN's anti-fraud solutions continue to be highly valued by customers. This ongoing demand is likely to have driven further growth in the Security Solutions business unit.
Expanding International footprint is expected to have been a tailwind. The APAC region delivered its strongest quarter in terms of year-over-year growth in more than three years. Continued strong performance in this region and other geographies is likely to have contributed positively to overall revenue growth.
What Our Model Says
Per the Zacks model, 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. But that’s not the case here.
ONESPAN has an Earnings ESP of +0.00% and a Zacks Rank #3 (Hold) currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Shopify (SHOP - Free Report) has an Earnings ESP of +7.78% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Shopify’s shares have declined 23.2% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
Apple (AAPL - Free Report) has an Earnings ESP of +3.05% and a Zacks Rank of #2 at present.
Apple’s shares have gained 13.4% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2.
Cognizant Technology Solutions’ shares have dropped 1.3% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.