We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rapid7 (RPD) Surpasses Q3 Earnings and Revenue Estimates
Read MoreHide Full Article
Rapid7 (RPD - Free Report) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 26.92%. A quarter ago, it was expected that this cybersecurity company would post earnings of $0.52 per share when it actually produced earnings of $0.58, delivering a surprise of 11.54%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Rapid7, which belongs to the Zacks Internet - Software industry, posted revenues of $214.65 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.19%. This compares to year-ago revenues of $198.84 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Rapid7 shares have lost about 29.8% since the beginning of the year versus the S&P 500's gain of 21.2%.
What's Next for Rapid7?
While Rapid7 has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Rapid7: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.53 on $212.08 million in revenues for the coming quarter and $2.18 on $835.22 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Riskified (RSKD - Free Report) , is yet to report results for the quarter ended September 2024. The results are expected to be released on November 13.
This provider of fraud-prevention services is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Riskified's revenues are expected to be $74.9 million, up 4.2% from the year-ago quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Rapid7 (RPD) Surpasses Q3 Earnings and Revenue Estimates
Rapid7 (RPD - Free Report) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 26.92%. A quarter ago, it was expected that this cybersecurity company would post earnings of $0.52 per share when it actually produced earnings of $0.58, delivering a surprise of 11.54%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Rapid7
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Rapid7 shares have lost about 29.8% since the beginning of the year versus the S&P 500's gain of 21.2%.
What's Next for Rapid7?
While Rapid7 has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Rapid7: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.53 on $212.08 million in revenues for the coming quarter and $2.18 on $835.22 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Riskified (RSKD - Free Report) , is yet to report results for the quarter ended September 2024. The results are expected to be released on November 13.
This provider of fraud-prevention services is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Riskified's revenues are expected to be $74.9 million, up 4.2% from the year-ago quarter.