OKTA Prepares To Report Third Quarter Income: What’s In The Cards?
Okta, Inc. OKTA is expected to release its third quarter fiscal 2022 results on December 1.
For the third fiscal quarter, Okta expects a non-GAAP net loss in the range of 24 to 25 cents per share. Zacks’ consensus estimate for the loss per share has held steady at 23 cents over the past 30 days.
Okta expects revenue of between $ 325 million and $ 327 million, which indicates 50% growth from the previous year. Zacks’ consensus estimate for revenue is set at $ 327.3 million, which indicates a 50.6% increase from the figure reported for the quarter last year.
Okta’s earnings have beaten Zacks’ consensus estimate over the past four quarters, with the average earnings surprise being 329.6%.
Let’s see how things went for Okta before this announcement:
Okta, Inc. Price and EPS Surprise
Okta, Inc. price-eps-surprise | Okta, Inc. Quote
Factors to consider
Okta’s results in the third quarter of fiscal 2022 are expected to reflect the benefits of new product additions, continued adoption and increasing use cases for identity solutions.
Okta Identity Cloud’s ability to easily consolidate and integrate existing applications without compromising security or stability attracts customers. The ability of Okta products to automate processes, secure data and reduce costs is also an asset.
The company won contracts in the public sector, which are expected to have resulted in revenue growth in the reporting quarter.
However, continued investments in research and development of its solutions are expected to have kept Okta’s margins in the third quarter of fiscal 2022 under pressure.
What our model says
Depending on the Zacks model, the combination of a positive earnings ESP and a Zacks # 1 (strong buy), 2 (buy), or 3 (hold) ranking increases the odds of beating the winnings. But it is not the case here.
Okta has a -3.23% revenue ESP and Zacks rank 4 (sell). You can discover the best stocks to buy or sell before they are flagged with our ESP Earnings Filter.
Actions to consider
Here are a few companies that are worth considering, as our model shows they have the right mix of elements to beat profits in their next releases:
Snowflake SNOW has a +1.83% earning ESP and a Zacks # 3 rank. You can see the full list of today’s Zacks # 1 Rank stocks here.
Snowflake shares have returned 26.3% year-to-date versus the 15% decline in Zacks’ internet software industry and the performance of the IT and technology sector. by 26.2% since the start of the year.
CrowdStrike CRWD has an ESP on earnings of + 0.92% and a Zacks rank of 3.
CrowdStrike shares have returned 9% year-to-date compared to Zacks Internet – Software’s industry decline of 15%. CrowdStrike has underperformed the IT and technology sector by 26.2% year-to-date.
Coupa software COUP has an Income ESP of + 41.18% and a Zacks Rank of 3.
Coupa shares are down 40.1% year-to-date compared to Zacks’ Internet industry’s 15% decline – Software. Coupa has underperformed the IT and technology sector by 26.2% year-to-date.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.